acquisition business plan template

Business Acquisition Plan: What to Include in 2024 (+ Template)

Kison Patel is the Founder and CEO of DealRoom, a Chicago-based diligence management software that uses Agile principles to innovate and modernize the finance industry. As a former M&A advisor with over a decade of experience, Kison developed DealRoom after seeing first hand a number of deep-seated, industry-wide structural issues and inefficiencies.

A business acquisition plan is an important component of planning for an M&A transaction, regardless of whether you require external financing. A solid business acquisition plan should lay out the rationale for the investment, and how it will add value for the entity. In this article, FirmRoom takes a closer look at how these documents should be crafted.

Understanding Business Acquisition Plan

A business acquisition plan is a strategy document, which serves the purpose of a business plan for an M&A transaction.

It outlines the motives behind a transaction, profiles of the companies involved in the transaction, how the transaction will generate value for the entity which is driving it, how the two companies will be integrated, and how the merged company (or simply acquired company in the case of an investment firm acquiring a company) is expected to perform.

Reasons to Have a Business Acquisition Plan

An acquisition plan provides its users with a roadmap to making the transaction a success. Even before the transaction is initiated, it acts as a reminder to the sponsors, what they’re looking for, why they’re looking for it, and how they’re going to ensure that the transaction is a success.

In general terms, the reasons to have a business acquisition plan are:

Strategic alignment

The overriding goal of a business acquisition plan, as the opening text alludes to, is strategic alignment: ensuring that those undertaking the deal, for lack of a better expression, ‘stick to the plan’, around the motives and means for making the deal a success.

Valuation and pricing

The plan should include strategies and methodologies for valuing the target company. It should guide the deal participants on how to determine a fair value for the target, assess synergies, and estimate future financial returns. It also sets a limit on how much the company can extend itself financially for a deal to occur.

Financing and resource allocation

Financing (sources and uses of funds) is just one part of the resource allocation conundrum. The business acquisition plan also outlines the working capital needs, who works where, how expenditures are going to shift, what capital assets are required, and more.

Business Acquisition Plan Template

The insight that FirmRoom has gained from working with hundreds of companies on thousands of transaction, have been collated in a business acquisition plan template.

This provides a detailed roadmap of what should be included in an effective business acquisition plan, ensuring that its users have everything in place for the conclusion of a successful transaction.

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Creating a Business Acquisition Plan Step-by-Step

While developing a business acquisition plan is recommended, having an ineffective acquisition plan is worse than having none at all.

The document has to be watertight, creating no doubt in the reader’s mind about the benefits of an acquisition.

A strong business acquisition plan should make the reader think that it makes far more sense to go ahead with the transaction than for the company to continue in the status quo.

That being said, the following should only be seen as a rough step-by-step guide to putting together a business acquisition plan:

Strategy development

Best practice:

• Identify where the company wants to be in each of the next five years, possibly on a month-by-month basis, and how it plans to get there. See here for example.
• Identify the key performance indicators that need to be tracked to ensure that the company meets these objectives.
• Based on both of the above, ask whether an acquisition is a crucial part of the company achieving those objectives, before moving forward.

Identifying and evaluating target companies

• Understand where the companies that fit into the strategy will be found , and be thorough and objective in the search for them.
• Be realistic about the companies that can be acquired/merged with, including valuations ,  so as not to waste resources for other companies and your own.
• Remember that just because a company is the only one that’s available, it doesn’t mean that a transaction is a good idea.

Due Diligence

• Use technology ; any M&A practitioner that decides against using a sound technology platform for due diligence is doomed to failure.
• Adopt a mindset where due diligence is considered an investment in the acquisition, rather than a cost to your own company;
• Do not fall for the M&A acquirer’s fallacy of ‘we’ve come this far, so we can’t go back.’ If due diligence says the deal isn’t right, it isn’t.
• Begin the post-merger integration phase as soon as the deal begins to look like a realistic possibility (something which DealRoom is designed to cater for).

Deal structure and negotiation

• Leverage the findings of due diligence to create a more informed negotiation process.
• Remember that there will be back and forth with the seller, and they can be reasonably expected to overvalue their asset.
• Consider all market outcomes (i.e. downturns, current value of stock vs. future value, etc.) when creating an offer. Avoid irrational exuberance.

Post merger integration (PMI)

• Keep in mind at all times during the PMI phase that this is where most of the value can be generated and lost in a transaction.
• As mentioned, begin the process as soon as possible. If the transaction is visible on the horizon, you need to start thinking about its integration.
• Don’t write this off as a ‘soft’ or unnecessary part of the transaction - it won’t be soft when it impacts on your income statement.

Common mistakes to avoid when writing a business acquisition plan

Despite plenty of advice to the contrary, enthusiastic CXOs often write acquisition plans which fail to avoid the pitfalls.

These are among the most common:

Putting the acquisition before the strategy

The acquisition is part of the overall strategy, not the other way around. Companies that are approached by others about a deal, and then somehow convince themselves that there is a strong rationale for a deal, fall foul to this backwards logic.

Management hubris

M&A is an area ripe with management hubris (take a glance at Google Scholar at all the academic texts that link the two). That means management hubris inevitably finds its way into business acquisition plans. Avoid it at all costs - it’s a highly costly behavioural pattern for companies of all sizes.

Lack of detail

The business acquisition plan is a strategy document, not a marketing one. That is to say, it should break down in a step-by-step fashion how the deal will generate value. The more detailed the better. “Creating an outstanding organization” is great, but writing it in the business acquisition plan won’t add any value.

Business acquisition plan template

A business acquisition plan is a hugely worthwhile document that all M&A practitioners should write in order to discern the value of a transaction and how that value can be extracted. It is the business plan for an M&A transaction.

Get your free template below to receive guidelines on how to create the document and make it work for your transaction.

Frequently Asked Questions (FAQs)

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Download Free Merger and Acquisition Templates for Business

By Joe Weller | February 15, 2019

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In this article, you’ll find 20 of the most useful merger and acquisition (M&A) templates for business (not legal) use, from planning to valuation to integration. These templates are available for free download in Microsoft Excel, Word, and PowerPoint formats, as well as PDF files.

Free M&A Planning and Strategy Templates

Merger timeline template.

This simple template provides a visual outline for your merger schedule. The timeline separates the phases of a typical merger, with space to list key activities and due dates. You can use this initial schedule throughout the process as a blueprint for your efforts.

Download Merger Timeline Template

Excel  |  Word  |  PDF  | Smartsheet

M&A Project Charter Template

A project charter is a formal narrative document in which you detail your goals, proposed budget, schedule, and responsibilities, as well as the problems you hope to solve with your venture — in this case, a merger or an acquisition. Use the Excel template to outline the planned aspects of the M&A; it will be the blueprint for the final narrative document in Word or PDF.

Download M&A Project Charter Template

Excel  |  Word  |  PDF

Roles and Responsibilities Template

A merger or acquisition will succeed only when everyone understands their roles and responsibilities from the outset. Use this standard roles and responsibilities template to organize team members by project and list their duties at each phase of the merger. Additionally, you can use this template for staffing and retention when you integrate organizations.

Download Roles and Responsibilities Template

Excel  |  Word

M&A Communication Plan Template

Use this template to plan communication for all stakeholders throughout the M&A process. This template includes separate charts for internal and external communications. It has space to list each stakeholder’s power or interest, their key issues, their communication vehicle and point person, their written copy, their frequency of communication, and any additional comments. Planning your communication at the outset — and updating your strategy along the way — can help ensure that both outside stakeholders and current employees stay up to date throughout the implementation process.

Download M&A Communication Plan Template

Excel | Word | PDF

Deliverables Chart Template

This template provides a chart to list each deliverable at every stage of the M&A process, from initiation and valuation through implementation and review. List each deliverable, description, criterion for acceptance, and party responsible, and easily track the status of each item. Built-in child rows allow you to add project phases if your merger or acquisition requires more steps. Refer to this deliverables chart throughout integration to ensure you haven’t missed any details.

Download Deliverables Chart Template

M&A Press Release Template

Available as Word and PDF files, this template provides an outline for formally announcing news of a merger or acquisition. The template includes space for company logo(s), the deal agreement, contact and background information, quotes from executives, and the company boilerplate. But you can add or delete sections to fit the needs of your press release. You can find additional press release templates for business use  here .

Download M&A Press Release Template

Word  |  PDF

Strategic M&A Presentation Template

Use this PowerPoint deck to present the business case for your M&A strategy. The template includes a slide for each phase of the merger or acquisition, with space to detail your intended approach and processes. The final slide enables you to list list strengths, weaknesses, and resources for different aspects of the target company in a pre-built infographic and functions as a high-level capabilities and asset analysis. Showcase your well-researched strategy and plan with this professional M&A proposal template.

‌ ‌ Download Strategic M&A Presentation Template - PowerPoint

Free M&A Valuation and Process Templates

Due diligence template.

Use this template to track and store information about each due diligence item. List all reference information about the item, along with the start and end dates, the party responsible, and the status. Additionally, the built-in Gantt chart allows you to simultaneously track multiple items against your project schedule, so that you can stay on top of every detail and adapt the timeline as needed.

‌ ‌ Download Due Diligence Template - Excel

Synergy and Culture Mapping Exercise

Evaluating company synergy is not only about financials, but also about culture. This template walks you through a culture analysis: Using a scale from 1 to 5, evaluate multiple aspects of a company’s strategic orientation, communication, training and development, planning, teamwork, and other operations categories. This exercise will help you identify differences in the two companies, so you can address them during implementation.

Download Synergy and Culture Mapping Exercise

Merger and LBO Model Valuation

A leveraged buyout (LBO) is a type of transaction in which the acquiring company uses borrowed money — including its own and the target company’s assets and equity — to cover the cost of acquisition. This template provides a step-by-step valuation for an LBO, with sample data to guide your own calculations.

Download Merger and LBO Model Valuation

Excel  | Google Sheets

Discounted Cash Flow Valuation Model

Discounted cash flow (DCF) is a valuation method that you can use to evaluate an investment (in this case, merging with or acquiring a company) based on estimates of its future cash flow. Use this template to find the present value of expected future cash flow by inputting net sales, profit, and other financial information, and follow the calculations to determine the value of the investment.

Download Discounted Cash Flow Valuation Model

Free M&A Integration Templates

Integration issue form.

Issues are bound to come up during integration, and this simple issue form allows you to track these challenges. The chart includes sections for listing a number and a description for the issue, as well as the team member responsible, the date it was reported, the action taken, the priority, and the status. Thus, you can monitor both the issues that arise and the responsiveness of your team throughout the integration process.

Download Integration Issue Form

Excel | Word  | PDF  | Smartsheet

Change Management Process Template

Just like any organizational change, integration requires planning. Use this change management template to outline the processes that will help you integrate the companies’ cultures, finances, roles and responsibilities, and more. This template is formatted like a flow chart, so you can view the entirety of the process schedule.

Download Change Management Process Template

Word  |  PDF  | Smartsheet

Post-Merger Integration Plan

Once you’ve closed the deal, you need to create an integration plan — typically, a lengthy document that outlines the changes facing each department in terms of structure, communication, and culture. Use this template to detail your integration strategy, objectives, resourcing, and execution plan. This template outlines the categories you can include, but you can adapt it to fit your needs.

Download Post-Merger Integration Plan

M&A Integration Scorecard Template

Use this template to evaluate integration 100 days and one year after you close the merger or acquisition. The template includes sections for detailing financial and operational synergies, total cost savings, market and customer synergies, and goals and projections for the coming year. By using a scorecard, you can hold yourself accountable to your initial objectives and take lessons for the future. Download the template in Excel or Word for internal data-gathering or as a PowerPoint slide to present to stakeholders and executives.

Download M&A Integration Scorecard Template

Excel  |  Word  |  PDF  |  PowerPoint

Additional M&A Templates

Startup and small-business financial plan.

The templates in this section are not specific to M&A transactions, but they help in the planning and due diligence phases of the process.

Startups and small businesses face different considerations and constraints than do large corporations. Use this simple Excel template to list costs, loans, and expenses, as well as to identify funding sources. This template functions similarly to a budget plan in that it allows you to track estimated and actual costs, as well as make adjustments along the way.

Download Startup and Small Business Financial Plan

Excel | Smartsheet

Strategic Business Plan

This comprehensive business plan template aids in planning and can function as a communication tool. With space to include company information, research, goals, and risks, this template provides a one-stop shop for managing all of the moving pieces of your business plan.

Download Strategic Business Plan

Excel  |  Smartsheet

Risk Management Plan Template

During the M&A planning phase, you need to identify the risks associated with acquiring or merging with another company. This risk management template includes space for analysis and monitoring, numerical calculations, a risk register, and a list of potential risks. Use this template to identify and monitor risks for the duration of your merger or acquisition.

Download Risk Management Plan Template

Project Lifecycle Plan

Understanding the lifecycle of your project — including the phases of your merger or acquisition — is crucial to planning the scope, resources, roles and responsibilities, and deliverables. This graphic template allows you to visualize your project lifecycle, from analysis and design all the way through implementation and monitoring. Add or delete phases to fit the needs of your endeavor.

Download Project Lifecycle Plan

What Is M&A?

M&A stands for merger and acquisition , a phrase that describes two companies or organizations that combine into one entity. The driving idea behind a merger or acquisition is that the companies together will be stronger, more competitive, or more profitable than they are by themselves.

Though the term M&A is common, mergers and acquisitions are actually two distinct concepts. A merger occurs when two companies of equal size or profitability come together, renounce their individual titles and stock, and continue as one unit. An acquisition occurs when one company (called the acquiring company ) buys another, smaller company (called the acquired or target company ). However, both terms generally refer to the consolidation of assets and liabilities that occurs when two entities combine into one.

Organizations have many reasons to choose M&A, but they essentially boil down to increasing synergy , the idea that when combined, two entities will be more powerful or competitive than they would each be on their own. On the buy side, the acquiring company might want access to certain technologies, resources, position in the market, or talent; on the sell side, the target company may want greater financial or market security.

There is a legal component to any merger or acquisition, but that is outside the scope of this article. Note that the templates provided here are intended for business use, not for lawyers.

Key Terms in M&A

The following is a list of key terms in M&A:

• Asset vs. Stock Sale: In an asset sale, the acquiring company purchases the target company’s assets and liabilities; a stock sale is the purchase of the owner’s shares in a company. There are financial and liability concerns with both options, so be sure to consult legal counsel when deciding which route to pursue.
• Consolidation: In M&A, this refers to the amalgamation of multiple organizations’ financials. Consolidation occurs in both mergers and acquisitions.
• Joint Venture: This term refers to a business entity that is owned and governed by two or more parties.
• Management Acquisition: Also called a management buyout, this is a type of acquisition in which a company’s existing management buys the company from the existing private owners or the parent company.
• Tender Offer: This is a public, open invitation by a prospective acquirer to all shareholders of a publicly traded company. This potential acquirer interfaces directly with the stockholders to facilitate the exchange.

Tips for Executing M&A Strategy

A successful M&A begins with — and relies on — a well-thought-out, well-researched strategy. Planning is vital for both the acquiring and acquired company, as the process is extremely difficult, with substantial data, staff, and money on the line. Plan early and continuously throughout the merger or acquisition, and set expectations for roles and responsibilities early on in the process. Most M&As involve several people, and you need a strategy for who will own each aspect of the transition.

Once you’ve set your strategic plan for merging with or acquiring a company, you must perform due diligence. As outlined above, due diligence includes numerous assessments, from valuation to the analysis of synergy and culture. Think of due diligence as an in-depth, multifaceted way of contextualizing multiple companies. With proper due diligence, you ensure that the merger or acquisition is a good fit. It also confirms that you have the correct tools and adequate resources in place to integrate with minimal disruption to all involved parties.

For an in-depth look at M&A strategies, read this article. Here is a list of quick tips that will help you get started.

• Be patient. Mergers and acquisitions are long-term investments, so treat them as such. Delays will inevitably arise, so stay patient and build in time for unexpected events.
• Build accountability with your team. Train your team to understand that actions have consequences.
• Continually make reviews. Perform ongoing due diligence.
• Perform an independent integration assessment. Any deal can benefit from external help, especially the kind concerning particularly large or complex organizations.
• Understand regulatory and other legal compliance issues before beginning the process. No merger or acquisition will succeed if it doesn’t meet legal standards. Consult legal counsel early in the process, so you can be sure you’re doing everything properly from the outset.
• Don’t take the first offer. Sell-side parties should get multiple bids to discover their worth, and they shouldn’t be afraid to bargain if necessary.
• Perform valuation systematically. The more you plan strategically, the less likely you are to suffer from information overload as you move through valuation and due diligence. Understand what information you need to obtain (and how you’ll obtain it) before jumping into analysis.
• Create a transition plan. Even after you close the deal, you still have work to do. Create a transition plan to manage the organizational changes that both parties will undergo, clarify staff retention and responsibilities, and monitor integration over time.

Phases of M&A

Typically, mergers and acquisitions follow a similar process that includes the following general phases:

• Planning: Planning includes elements ranging from strategy, initial research, and investor pitching to communication plans and timelines. Thorough planning is crucial to any successful M&A.
• Valuation: This phase entails several specific and highly detailed steps, including financial valuation, culture and synergy mapping, and due diligence. Acquiring companies can use several different techniques to evaluate an organization’s profitability or holdings; many opt to hire outside counsel to perform these analyses.
• Integration: Once you’ve signed the deal, it’s time to integrate the two business entities. Successful integration requires planning for organizational structure, finances, roles and responsibilities, culture, and much more. Be sure to monitor integration over time and strive to continually improve.

For a step-by-step walkthrough of M&A processes, read this article.

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How To Write an Acquisition Business Plan

In the world of business, acquiring another company is a bold move. It’s a venture filled with both opportunities and risks. To navigate this complex journey successfully, you need a well-structured acquisition business plan. This isn’t just any document; it’s your guiding star, your blueprint, and your key to making this business acquisition a triumphant success.

Acquiring a business is no small feat. It’s a defining moment in the life of any company, and the acquisition business plan is the compass that will lead you through this challenging journey. In this guide, we will not only emphasize the significance of having a comprehensive plan but also provide you with an in-depth understanding of the critical elements that should be present in your plan.

What is Acquisition Planning?

How to create an acquisition business plan step by step, start with an executive summary, get to know your company, understand the industry, evaluate the target business, lay out your acquisition strategy, your marketing and sales game plan, crunch the numbers, deal with potential risks, navigate legal and regulatory matters, meet the team, merger and acquisition business plan template, optimizing a business acquisition plan with structured processes, making it work together, sharing the secrets, one size fits all, more bang for your buck, what makes you special, the big picture.

Acquisition planning is a structured process for identifying and acquiring goods or services to meet an organization’s needs. It is a critical part of the procurement process, as it helps to ensure that the organization gets the best value for its money.

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The executive summary is like the opening scene of a blockbuster movie – it sets the tone and captures the audience’s attention. It’s a concise yet impactful overview of your acquisition strategy. This section serves as the very first impression potential investors and partners will have of your plan.

In your executive summary, include key highlights such as the purpose of the acquisition, the target business, and the expected benefits. Remember, it should be captivating, informative, and compelling.

In the ‘Get to Know Your Company’ section, you provide an extensive profile of your own organization. This is your opportunity to showcase your strengths, experience, and financial stability. It’s essentially the part where you introduce yourself before a crucial presentation.

Outline your company’s history, achievements, and expertise. Explain why your company is the right entity for this acquisition. Make sure to instill confidence in the minds of your readers and potential stakeholders.

An acquisition is not just about buying another company; it’s about entering a new landscape. Understanding the industry in which your target business operates is crucial.

Here, you need to delve deep into the industry. Share insights about market trends, potential for growth, and any challenges that might be on the horizon. This section serves as evidence that you’ve done your homework and are prepared for what lies ahead.

Let’s talk about the business you plan to acquire. In this part of your business plan , it’s your chance to discuss the target business in detail. This includes its history, financial performance, and the assets it brings to the table.

Highlight the aspects of the target business that are promising, and also acknowledge where improvements can be made. This demonstrates your realistic approach and your clear vision for the future.

This is where you outline your plan for acquiring the target business. Your strategy should include the deal structure, financing details, and a clear timeline. Explain how you intend to integrate the newly acquired business into your existing operations seamlessly.

In this section, it’s essential to exhibit your strategic thinking and your ability to execute the acquisition effectively.

Once the acquisition is complete, what’s your strategy for marketing and selling? How will you use this new addition to your portfolio to grow your customer base and, consequently, your revenue?

This part of your plan should outline your marketing and sales strategies post-acquisition. It’s the place to showcase your vision for the future and your ability to drive results.

This is where the hard numbers come into play. Provide detailed financial projections, including income statements, balance sheets, and cash flow forecasts. These projections should offer a clear picture of the expected financial benefits of the acquisition.

These figures are not just dry statistics; they are the financial backbone of your plan, demonstrating the potential return on investment.

Every business venture comes with its share of risks. In this section, you should identify potential risks associated with the acquisition and explain how you plan to address them.

This shows your meticulousness and your commitment to risk mitigation, which is crucial for building trust and confidence among your stakeholders.

Acquisitions often involve complex legal and regulatory matters. It’s essential to discuss these aspects in your plan. If there are compliance issues, explain in detail how you intend to address them.

This section assures your readers that you’re well-prepared to navigate the legal intricacies involved in the acquisition.

A successful acquisition is a team effort. Introduce the key players involved in the acquisition and explain their roles. Highlight their experience, qualifications, and achievements.

By showcasing the strength of your team, you demonstrate that you have the right people in place to execute the plan effectively.

Get specialized business plan services now!

Grab our Merger and Acquisition Business Plan Template to make your merger or acquisition journey smoother. This template is packed with key sections and detailed insights, ensuring you cover all aspects of your acquisition strategy. Let this template be your roadmap as you navigate the complexities of business acquisitions. Start your journey toward a triumphant merger or acquisition business plan today! Download M&A Business Plan Template

Crafting a business acquisition plan isn’t just about signing papers; it’s about blending smart strategies that supercharge success. By weaving organized methods into this plan, you’re making sure that the merging companies don’t just coexist but flourish together.

Think of it as putting puzzle pieces together. Show how a carefully planned approach isn’t just about buying a company; it’s about merging their ways of doing things into a cohesive strategy. This part is about combining different systems, rules, and methods smoothly.

Talk about finding and using the best ways of doing things from the company you’re acquiring. Explain how mixing their successful methods with yours makes everything run smoother and more efficiently.

Show why having a set way of doing things helps. Discuss how having consistent methods, from handling money to everyday tasks, helps the new company grow without unnecessary overlaps.

Explain how having a well-thought-out plan gets you more than just a new company—it increases your profits too. Highlight how bringing in smart strategies boosts how well the business works and makes it stronger.

Talk about the advantage you have—the ability to look at different ways companies work. Explain how this helps you find and use the best ideas, making all your businesses better.

Wrap it up by saying this plan isn’t just a bunch of papers—it’s a map to a successful future. It brings together the best parts of different companies, wipes out any problems, and sends everyone toward success.

In the concluding section of your plan, summarize the key points. Emphasize the potential for success that your acquisition business plan represents. Leave your readers with confidence in your approach and a sense of optimism about the future.

In conclusion, an acquisition business plan is more than just a document; it’s the heart and soul of your acquisition strategy. A meticulously crafted plan, like the one described here, can be your key to not only a successful acquisition but also a confident and prosperous future in the complex world of business acquisitions.

By following these steps and adding depth to each section of your plan, you can create a compelling narrative that instills trust and confidence in your stakeholders. This detailed roadmap will position you to excel in the intricate and rewarding realm of business acquisitions.

What is acquisition in business strategy?

An acquisition is a business deal where one company acquires and assumes control of another company. These transactions are a fundamental component of mergers and acquisitions (M&A), which represents a professional field in corporate law and finance centered on the acquisition, sale, and merging of businesses.

What is acquisition in business example?

An acquisition is a business deal in which one company obtains companies, organizations, or their assets in exchange for some form of consideration from another company. Examples of such transactions include Google’s purchase of Android for $50 million in 2005 and Pfizer’s acquisition of Warner-Lambert for $90 billion in 2000.

How do I prepare my business for acquisition?

• Perform an internal audit.
• Establish a well-organized company structure.
• Tidy up your financial statements.
• Renew your most crucial contracts.
• Create a strategic plan for the next five years.
• Address any pending legal and tax matters.
• Optimize your business operations.
• Ensure you have a top-notch team in position.

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How to Write a Business Plan for an Acquisition

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How to Write a Business Plan Outline

How to amend the business name on a court document, how to overcome corporate cultural issues in mergers & acquisitions.

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• Step-Ups in Valuation of Assets for a Newly Acquired Business

Many considerations come with a business acquisition. Not only do you have to consider the cost of the purchase, you have to consider how your business will integrate the newly purchased assets and utilize, or relieve, the employees that come along with the business. The business plan takes these and other acquisition considerations, along with their pros and cons, and organizes them into reusable research and analysis.

Create the business description for your business plan. List the legal business description of your business and indicate that your business is acquiring a business. Provide a detailed account of that business’ history, including staff size, location, legal business description and financial history. Identify the business’ short- and long-term goals and projections.

Create your business plan’s staffing section. List the managers and staff required to complete the business’ operations in a timely and efficient manner. Explain the functions of each manager and identify each of your business’ departments.

Identify the number of acquired employees and show how those employees will be integrated into the business. List the costs of all employment aspects, including costs, such as payroll, training, benefits and severance packages. Create an organizational chart to show the chain of command.

List the location of your business, as well as the locations of any acquired property. Explain how the properties are utilized by the business, as well as the costs for each. Include items such as zoning compliance fees, utilities and taxes in your expense list.

Show if the properties are owned, leased or rented. Address which properties will be retained and which will be released. Determine how your business will utilize the equipment and inventory acquired during the acquisition. Explain the steps that your business will use to control its losses and increase its assets.

Identify the external threats and opportunities that accompany the business acquisition. Look at areas such as customer demands, government regulation and industry competition. Research the identified areas thoroughly. Develop strategies to overcome the threats that accompany the acquisition and ascertain how your company will take advantage of its underlying opportunities.

Identify the products and services that your business will focus on after the acquisition. Categorize the original products and services against the newly acquired ones. Show and explain the costs and procedures of implementing the change requirements and merging the businesses. Identify any newly created products that result from the merge of company resources and identify any new equipment or inventory that will be required.

Identify the target market for your business. Explain how this market has changed as a result of the acquisition. Differentiate the market by separating it into categories of original, acquired and new markets. Address each category separately. Ascertain how your business will maintain its original customer base, and welcome its acquired and new customers.

Create financial statements for your business acquisition. Include personal financial statements for each owner of the business. Provide a balance sheet, income statement and cash flow statement for the business at a point just after the acquisition. Use realistic figures and assumptions when forecasting the business. Include complete financial statements for your original business and acquired business, for the past three years, to support and justify your forecasts.

Use the executive summary to introduce your business, along with the new products and services that result from the acquisition. Highlight your company’s various target markets and briefly review the trends within the industry. Review the reasons for the acquisition and explain how the acquisition will make your company stronger. Limit the executive summary to no more than three pages.

Include a copy of the acquisition contract in the appendix of your business plan, along with supporting documents, such as lease agreements, warranties and building appraisals. Begin the appendix with a content page. Label the documents accordingly and place the appendix at the end of your business plan.

• MasterCard International: The Plan

Writing professionally since 2004, Charmayne Smith focuses on corporate materials such as training manuals, business plans, grant applications and technical manuals. Smith's articles have appeared in the "Houston Chronicle" and on various websites, drawing on her extensive experience in corporate management and property/casualty insurance.

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Strategic Acquisition Strategy Plan Template

What is a Strategic Acquisition Strategy Plan?

A strategic acquisition strategy plan outlines the steps a business must take in order to successfully acquire another business. The plan includes researching potential acquisitions, evaluating them, negotiating terms with the target company, and finalizing the acquisition. This plan is essential for businesses that are looking to expand their operations, diversify their product offerings, or enter into new markets.

What's included in this Strategic Acquisition Strategy Plan template?

• 3 focus areas
• 6 objectives

Each focus area has its own objectives, projects, and KPIs to ensure that the strategy is comprehensive and effective.

Who is the Strategic Acquisition Strategy Plan template for?

The Strategic Acquisition Strategy Plan template is designed for businesses of all sizes and industries that are looking to acquire another business. It is a comprehensive plan that is easy to follow and can be tailored to each individual business’s needs. It provides clear objectives, measurable targets, and actionable steps that can help businesses achieve their acquisition goals.

1. Define clear examples of your focus areas

Focus areas are the main areas that need to be addressed when creating a Strategic Acquisition Strategy Plan. Examples of focus areas can include identifying potential acquisitions, negotiating terms, and closing the acquisition. Each focus area should include objectives, measurable targets (KPIs), and actionable projects that need to be completed in order to successfully acquire another business.

2. Think about the objectives that could fall under that focus area

Objectives are the specific goals that need to be achieved in order to reach the overall goal of acquiring another business. Objectives should be clear and actionable, with measurable targets and actionable projects that can be implemented in order to achieve them. Examples of some objectives for the focus area of Identifying Potential Acquisitions could be: Research Potential Acquisitions, and Evaluate Potential Acquisitions.

3. Set measurable targets (KPIs) to tackle the objective

KPIs (key performance indicators) are measurable targets that are used to track progress towards the objectives and overall goal of acquiring another business. Examples of KPIs can include identifying potential acquisition targets, qualifying acquisition targets, and negotiating terms with the target company.

4. Implement related projects to achieve the KPIs

Projects (or actions) are specific activities that need to be completed in order to achieve the KPIs and objectives. Examples of projects can include researching potential acquisitions, evaluating them, and negotiating terms with the target company.

5. Utilize Cascade Strategy Execution Platform to see faster results from your strategy

Cascade Strategy Execution Platform helps business teams create, track, and measure the progress of their strategies. With Cascade, businesses can create actionable plans that are easy-to-follow and measure performance in real-time. By leveraging Cascade, businesses can achieve their acquisition goals faster and more efficiently.

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Business Plan for Buying an Existing Business

Published Oct.18, 2023

Updated Apr.19, 2024

By: Alex Silensky

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Table of Content

Buying an existing business is a great way to enter a new market, expand your product or service offerings, or leverage the seller’s existing customer base and brand recognition. However, before making an offer, you need a clear and realistic acquisition business plan for running and growing the business post-acquisition.

A business plan for buying an existing business is a document that outlines your vision, goals, strategies, and financial projections for the business you want to buy. It is similar to a regular business plan but also includes information about the seller’s business history, performance, strengths, weaknesses, opportunities, and threats. 

A business plan for buying an existing business via franchise business planning services helps you to:

• Evaluate the feasibility and profitability of the deal
• Negotiate the best price and terms with the seller
• Secure financing from lenders or investors
• Manage the transition and integration process smoothly

What to Include In an Acquisition Business Plan?

A business plan for purchasing an existing business should cover all the essential aspects of running and growing a business, such as:

• Executive summary
• Company overview
• Industry analysis
• Marketing plan
• Operations plan
• Organization and management
• Financial plan

Why Do You Need a Business Plan Sample for Buying an Existing Business?

A business plan sample can help you write a business plan for buying an existing business by providing a template and examples of how to structure and present your information. A business plan for buying an existing small business can also inspire you with ideas and insights on improving or innovating the existing business.

To help you get started with writing your acquisition business plan template for buying an existing business, we have created a sample based on buying a restaurant for you.

Executive Summary

We are XYZ Restaurant Group, a company that owns and operates several successful restaurants in New York City. We seek to acquire ABC Restaurant, a well-established and popular Italian restaurant in Brooklyn, New York.

For over two decades, ABC has been a mainstay in the community, earning devoted regulars and renown for top-notch cuisine and hospitality. This 100-seat eatery runs at full capacity for lunch and dinner daily. Raking in $1.2 million yearly with $150,000 left over after expenses, ABC shows no signs of slowing down after its longstanding prosperity.

ABC Restaurant is an excellent opportunity to expand our portfolio and enter a new market. We have identified several areas where we can add value and improve the performance of the restaurant, such as:

• Updating menu and dishes
• Enhancing online presence and marketing
• Renovating interior/exterior
• Hiring and training new staff

We estimate the total cost of acquiring and improving ABC will be $500,000. We project that ABC will generate an annual revenue of $1.5 million and a net profit of $200,000 in the first year after the acquisition and grow by 10% annually.

Company Overview

XYZ Restaurant Group owns and whips up several nifty eats-places in the Big Apple. We’re crackerjack at serving out first-rate delicious eats from all over the world, like Mexican, Thai, Indian, and Mediterranean. Folks rave about our mouthwatering chow, friendly service, cozy mood, and fair coin.

Our mission is to dish up a memorable dining experience that delights taste buds and beats hopes. Our vision is to become top cook in the USA, with a diverse and brainy bill of fare for different chowhounds. We value being the cat’s meow, passionate, upright, diverse, and keeping customers cheerful.

We aim to acquire ABC, a swell and popular Italian hub in Brooklyn. ABC has loyal eaters and a dynamite food and service name. We want to buy ABC because it has a potential for growth and bankroll.

Industry Analysis

The restaurant industry in the USA is a large and diverse sector that includes various types of establishments, such as full-service restaurants, fast-food restaurants, cafés, bars, and catering services. 

Here are some key stats regarding the restaurant industry in the USA:

• The food service industry might reach $997B in sales in 2023. (Source – National Restaurant Association )
• There are 749,404 restaurants in the United States as of 2023. (Source – Zippa )
• Between April 2022 and March 2023, new business openings in the restaurant industry increased by 10%. (Source – Yelp )
• The US restaurant industry shall grow at a CAGR of 10.2% in 2022 and 2023. 

Some of the key trends and drivers that influence the restaurant industry are:

• Consumer preferences
• Regulations

Our primary competitors in the Italian restaurant segment are:

• Strong brand recognition
• Diverse menu selection
• Provides good value
• Menu lacks innovation
• Food quality is inconsistent
• Customer service needs improvement
• Expensive menu prices
• Small capacity limits covers
• Relies heavily on its location

Marketing Plan

Our marketing plan for ABC is based on the following objectives:

• To increase the awareness and recognition of ABC.
• To attract new customers and retain existing customers.
• To increase the sales and profitability of ABC.

Our business plan for buying an established business consists of the following elements:

• Professionals
• Millennials
• Updating the menu and introducing new dishes
• Enhancing the online presence and marketing
• Renovating the interior and exterior
• Hiring and training new staff and implementing best practices
• Branding – Our brand name is simple, memorable, and distinctive. Our brand logo is a stylized letter A with a fork and knife on either side. Our brand slogan is “ABC: A Taste of Italy.” Our brand colors are red, white, and green, representing the colors of the Italian flag. Our brand voice is friendly, professional, and authentic.
• Offering discounts and coupons
• Implementing dynamic pricing
• Creating bundle deals
• Providing upselling and cross-selling opportunities
• Online – Search engines, social media, email, and blogs, online reviews, testimonials, and referrals
• Offline – Newspapers, magazines, radio, TV, billboards, print ads, radio spots, TV commercials, outdoor signs, flyers, brochures, and business cards
• Events – Trade shows, festivals, and community events via booths, banners, and samples to display using contests, games, and giveaways

Operations Plan

Our operations plan for ABC is based on the following objectives:

• To provide a safe, clean, and comfortable environment
• To deliver high-quality food and service
• To manage our resources and costs effectively

Our business plan for buying an existing company consists of the following elements:

• Location and Facilities – ABC operates at 123 Main Street, Brooklyn, New York. It is a prime location with high foot traffic, visibility, and accessibility. The restaurant occupies a 2,000-square-foot space, including a dining area, kitchen, storage room, restroom, and office. The dining hall has a capacity of 100 seats and can accommodate up to 150 customers at peak times.
• Food: We buy ingredients from XYZ Food Distributors, a local company specializing in Italian food products.
• Beverages: We buy our beverages from ABC Beverage Company, a national company that offers a wide range of alcoholic and non-alcoholic drinks.
• Other: We buy our other supplies from DEF Supply Store, a regional company that provides various supplies.
• Food Safety – Adhere to all FDA and DOHMH guidelines. Monitor and log temps, freshness. Train staff on protocol.
• Service Excellence – Follow XYZ standards for hiring, training, dress code, incentives, feedback. Address complaints ASAP.
• Performance Evaluation – Track KPIs (sales, costs, satisfaction, retention) with POS, software, spreadsheets. Hold regular reviews to improve.
• Business License from NYS Department of State
• Food Service License from DOHMH
• Liquor License from NYS Liquor Authority
• Health Inspection clearance from DOHMH
• Fire Inspection clearance from NYFD
• Workers’ Compensation Insurance
• Liability Insurance
• Sales Tax registration and remittance with NYS Taxation and Finance
• Passed inspections for health, sanitation, and fire safety standards
• Obtained all necessary permits, licenses, registrations, and insurance

Organization and Management

XYZ Group is a partnership between Alex Smith, Park Smith, and Mark Wood, who own 33.3% and oversee strategy, operations, and technology, respectively.

ABC is a subsidiary operated by the following staff:

• General Manager – Reports to Alex Smith, oversees daily strategic and operational planning services
• Chef – Reports to Park Smith, manages kitchen and food preparation
• Sous Chef – Assists the Chef ensures food quality
• Kitchen Staff – Report to Sous Chef, perform various kitchen duties
• Servers – Report to the General Manager, take orders, and serve customers
• Host – Reports to General Manager, greets and seats guests
• Bartender – Reports to General Manager, prepares and serves drinks
• Delivery Driver – Reports to Mark Wood, delivers orders to customers

We have an experienced, competent team at ABC with proper training, compensation, and a collaborative work culture to drive success. The organizational structure establishes clear roles and reporting lines.

Financial Plan

Our financial plan for ABC is based on the following objectives:

• To generate sufficient revenue and profit
• To maintain a positive cash flow
• To secure adequate funding

When buying an existing business, it’s important to determine how much operating capital you should plan for. Our financial plan consists of the following elements:

• Funding Sources
• Assumptions

Income Statement

• Balance Sheet
• Cash Flow Statement
• Ratio Analysis
• Break-Even Analysis

Get Expert Help with Your Acquisition Business Plan

As you can see, developing a comprehensive business plan for buying an existing business requires significant time and expertise across various areas like finance, operations, marketing, and more. That’s where our expert advisors at OGSCapital can help.

With over 15 years of experience in M&A, strategic planning, and business planning, OGSCapital has helped numerous clients acquire and integrate businesses successfully. Our business plan writers can conduct diligence, analyze the deal, create projections, and craft a winning plan tailored to you. If you’re still thinking about how to buy an existing business, partner with our seasoned advisors to maximize your chances of closing and profiting.

Frequently Asked Questions

What is acquisition in business plan.

Acquisition in a business plan is buying or merging with another company to achieve strategic or financial goals. Acquisition planning can help a company expand its market share, diversify its product portfolio, acquire new technologies or skills, or reduce competition.

How do you create an acquisition plan?

To create a business plan for buying an existing business, you must define your objectives, identify and evaluate targets, conduct due diligence for merger and acquisition , negotiate the deal, plan and execute the integration, and monitor the outcomes.

How do I prepare my business for acquisition?

To prepare your business for acquisition, you should improve your business value, know your valuation range, establish an advisory board and a transition team, clean up your financials and legal documents, and prepare a pitch deck and better buy side due diligence services .

What should be included in an acquisition plan?

A business plan for buying an existing business should include an executive summary, target description, market overview, sales and marketing, financial history and projections, transition plan, deal structure, and appendices/supporting documents.

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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Acquisition Business Plan Template

Start your Acquisition business with our comprehensive business plan template. It features targeted market analysis for the solar energy sector and includes financial projections to ensure your success in the solar installation industry.

Download the template today!

Features of our acquisition business plan template:.

Market Research: Conduct thorough analysis of local demand for solar installation services, including target demographics, renewable energy incentives, and potential competitors.

Unique Selling Proposition: Clearly define what sets your Acquisition business.

Marketing Strategies: Develop effective plans to promote your solar installation services, including digital marketing, partnerships and referrals 

Benefits of Using Our Template:

Targeted Strategy: Develop a focused business plan based on comprehensive market research and analysis, ensuring alignment with local demand and competitive landscape.

Competitive Advantage: Establish a compelling unique selling proposition that differentiates your Acquisition business and attracts customers.

Increased Success Potential: Enhance your chances of success by crafting a strategic business plan that effectively positions your Acquisition business in the market and outlines actionable marketing strategies to attract clients and generate revenue.

Acquisition Business Plan Frequently Asked Questions

Q: why is a business plan crucial for a company acquisition.

A business plan for an acquisition is essential for aligning strategic goals with the operational and financial realities of merging two companies. It facilitates thorough due diligence, helps predict synergies, and identifies potential integration challenges. Additionally, a solid acquisition business plan can attract potential investors or lenders by showcasing the strategic value and long-term vision of the acquisition.

Q: What are the key components of an acquisition business plan?

A: An effective acquisition business plan should encompass the following critical components:

Acquisition Strategy and Rationale: A clear explanation of why the acquisition is being made, including strategic benefits and expected synergies.

Transition Plan: Outline of the steps to integrate the target company into existing operations, addressing both short-term and long-term objectives.

Operations Plan: Strategies for managing combined operational processes, resources, and technology integration.

Risk Analysis and Mitigation: Identification of potential risks with strategies to mitigate them effectively to ensure smooth transition and operational stability.

Q: How can an acquisition business plan aid in securing financing or investor support?

A: A comprehensive acquisition business plan demonstrates a clear understanding of the target company’s value and how the acquisition enhances the combined entity’s market position and financial strength. It provides investors and lenders with detailed financial projections that outline the growth potential and expected return on investment. This plan also addresses risk management and integration strategies, which are critical for convincing stakeholders of the acquisition's viability and strategic value.

We Know a Good Business Plan When we See One

Collectively, our team has reviewed thousands of business plans and has nearly 20 years of experience making SBA loans. We've also helped more than 50,000 businesses create financial projections across many industries and geographies.

Adam served as Executive Director for a SBA microlender in Indiana for over 10 years helping businesses and reviewing thousands of business plans.

Grace has built hundreds of custom financial models for businesses as well as our projection templates which are used by thousands of businesses every year.

Kyle served as an SBA loan officer for 7 years working directly with startups and business owners to review their business plans, projections, and prepare their loan package.

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M&A Integration Tools & Templates

Our M&A planning tools and templates help simplify and expedite integration work and help teams produce it in common formats.

The M&A integration project plan tools are organized in these categories:

• Communication

PRITCHETT  Merger Integration Certification Workshop Attendees  and  Website Subscribers  can access all the M&A integration tools and templates, not just the free ones. They can also access all the presentations, playbooks, books, articles, checklists, software, assessments, webinars, research, and videos on MergerIntegration.com.

(Partial List - See  eMerger Software  for more M&A integration tools and templates)

Planning Tools

Reporting tools.

Communications Tools

Governance Tools

Charter tools, culture tools.

Finance & Accounting 90-Day Acquisition Integration Plan

Finance & Accounting 90-Day Acquisition Integration Plan that incudes 93 tasks grouped in the following categories: Budget and Forecast, Insurance Coverage, Limits of Authority, Insurance Policies, Reporting Process, Purchase Price Accounting, and External and Internal Audits.

Sub-Work Stream Budget and Finance

Post-Merger Integration Human Resources Plan

27 Initiatives/Activities

1.0  OD - Succession Planning

2.0  OD - Leadership Development

3.0  OD - Training

4.0  OD - Tuition Reimbursement

5.0  OD - Performance Management - Next Year

6.0  OD - Performance Management ...

Cross-Border Day 1 Merger Integration Plan

Excerpt from day 1 cross-border plan for 5 cities and 4 countries.

Internal Comm: FAQs (IT, Payroll info: semi-monthly to bi-weekly, Cobra, Remote I-9s (notarized), holiday, FICA withholding, insurance deductible) Full List of Employees (preferred name, email address, cost center, job title) Establish new vendor as supplier (interim IT support)

Internal Comm: ...

Post-Merger Integration Cross-Border Finance Plan

7-Page Finance Plan from a Cross-Border Merger.

Finalize and communicate organizational structure Coordinate closing process for August 2024 Establish initial treasury linkage to Acquirer

• Weekly cash forecast process established
• Weekly conference call re: cash position set up
• Presentation by NT on capabilities to replace lock box

Develop Tax Efficient Global Reorganization of Acquirer. . .

How to Identify Post-Merger Integration Priorities

In this task, each Integration Team identifies their priority initiatives and action items. Depending on the size, complexity, and resources dedicated to Integration, this activity can take two weeks to a month. The team may work from a generic list of tasks or start at ground zero with analysis of the merging organizations. The objective is to list the short- and long-term initiatives that will help the combined companies achieve the defined merger synergies and goals.

Staffing and Retention Integration Project Plan

Over 70 Staffing and Retention Activities Grouped into these Categories:

• Finalize Organizational Structure for All Functions
• Deploy a Staffing Process to Assess, Select, and Announce All Levels of the Organization below the Management Team
• Management Team Design Tools to Retain Key Talent Prior to Close and Throughout the Transition Period
• Develop a Process for Managing Reductions in Force and Administering Separation Packages and Outplacement Services
• Design an Issue-Free Day 1 From the Employee Perspective. . .

Due Diligence Data Request Checklist for an Acquisition Integration

Sensitive Information

• Top 20 customers by business sales
• Revenue for past 3 years by source
• Sales:  Rebates & Discounts
• Top 100 suppliers and the AP spend month by month last 24 months. 

Non-Sensitive Information

• Financial systems for reporting and transactions...

Target Operating Model and Roadmap Template

Buyer As-Is Assessment People, Processes, Systems & Tools, Assets & Infrastructure, Contracts

Seller As-Is Assessment People, Processes, Systems & Tools, Assets & Infrastructure, Contracts

End-State Target Operating Model Gaps and Transformation Steps

Strategic Score of Each Integration Initiative

A strategic score is assigned to each of 144 workstream initiatives in a cross-border acquisition integration.

Columns on Excel spreadsheet for each Initiative:

Work Stream, Responsible, Execution by Day 1, Urgency: Hi/Medium/Low, Impact: Hi/Medium/Low, Strategic Score, Ranking in Original Top 10, End State, Impacted Countries, Project Structure, Led By Accountable, Reporting to IMO 

Acquisition Project Plan Excel Template

The Excel file includes integration project plan templates for Finance, HR, IT,  Corporate, Legal, and Operations. 

Column headings in the spreadsheet templates are: Work Streams, Initiatives, Owner, Day 1 Mandatories, Start Date, Completion Date, Key Issues and Risks, Cross Dependencies, and Actions Required.

The templates were utilized in the M&A Integration Playbook - 20 Billion Acquisition.

Evaluation of HR Acquisition Integration Plan

The biggest challenges with this planning team have been:

• Lack of clarity regarding what they own and what they don’t own within their charter (i.e., staffing, severance, retention, titling, compensation, org. design, etc.)
• Slow to develop things that they feel they need more time to work on (staffing, severance, retention, etc.)
• Figuring out if they could engage outside consultants 

HR Team Post-Merger Integration Charter

Charter Statement Identify and define the future state OD/HR organization, philosophies, policies, procedures, programs, and support systems. In addition, identify high-level activities, tasks, and costs required to combine the two organizations into the future state organizations. Special attention will be given to high-priority (Day 1) items as well as milestone components to reach the decided end state.

IMO Kick-Off Meeting Agenda: Acquirer-Acquired Company

Time         Topic

8:00-8:10  Review objectives and target outcomes of meeting                                

8:10-8:30  Ensure all participants grounded in legal rules of engagement for go forward planning activities

8:30-8:45  Transaction & Timing Update  Communicate deal status and target close date scenarios 

8:45-9:00  Overview of key deliverables, timing, R&R’s, and relevant IMO process details ...

M&A Integration Risk Impact/Mitigation Template

Risk : Agreement delayed / production dates push into busy season 

Potential Impact : Integration work competing with regular work at busiest time of the year for sales, production, and fulfillment.

Mitigation Plan : Make decision on transferring production into 2022 and fulfill all else from west coast

Potential Cost Impact: Rent costs for Company A, delayed realization of production efficiencies ...

180 Day Post-Merger Integration Plan at 90 Days Post Close

Human Resources: Compensation

• Plan for mid-transition hires
• Communicating changes to salary grade and/or pay adjustments
• Exec Comp:  SC compensation changes in System
• All pay changes effective April in System

M&A Integration Scorecard Template

Excel Spreadsheets

10 Instructions

• The latest version of the Integration Scorecard/Milestones will be sent to you via email each Monday. This version will reflect all updates reported through 5:00 pm (Central) the previous Friday.
• Send all weekly updates to Bill Smith at [email protected]
• Make your updates directly to the latest version of the Scorecard/Milestones ...

Post-Merger Integration Dashboard

Post-merger integration status reported by these departments: .

• Corporate Business Development
• Corporate Communications
• Tax Products
• Customer Support
• Human Resources
• Information Technology
• Marketing . . .

Steering Committee Post-Merger Integration Dashboard

The steps to create an integration scorecard and the categories to cover, plus an example

M&A Synergy Plan Template

Synergy types include Headcount, Operations, Sales Procurement , R&D Cost Savings, Pricing Rationalization, Procurement, and Cross Selling.

M&A Cost Synergies Report

M&A Cost Synergies Excel Template plus Example of Completed Template

Instructions for Cost Synergy Template       

1) Log each integration activity that increases or decreases headcount and/or expenses with projected time frames.   

2) Use "Assumptions and Notes" to describe each integration activity in more detail.

3) Notes regarding general accounting treatment:

• Severance for reductions in Acquiree positions are generally capitalized as part of the purchase price (if the reduction is made within one year).
• Severance for reductions in Acquirer positions are expensed when employees are notified ...

M&A Synergy and Cost Savings Report Templates

Excel spreadsheets to track synergy estimates categorized as labor and non-labor, required and discretionary (strategic vs. nonstrategic).

Estimated M&A Synergies Report

Report template includes conservative, optimistic, and most likely synergy estimates plus their basis for calculation, underlying assumptions, and time frame.

Cross-Border M&A Synergies

Synergies for the following work streams:

• Finance & Corporate Admin Phase One Americas
• Finance & Corporate Admin Phase 2  EMEA
• Legal & Risk Management
• Administration
• Manufacturing Operations
• Columns on the Excel Spreadsheet:

M&A Synergy Template

The M&A Synergy Template captures synergy description, timing, assumptions, risks, cost to achieve, optimistic, conservative, and most likely synergy projections plus actual net synergies achieved.

Status of Post-Merger Integration Guiding Principles

Status of Integration Guiding Principles 

Live our values — no compromise People think that overall the leadership teams are exhibiting values

Work together — no “us and them” Still "pockets" of dominant Target and Acquirer groups

Act with urgency — make decisions quickly Still major concerns around the day-to-day decisions are too slow…

Templates for Post-Merger Integration Plan Review

Questions to review communications, costs, and systems in each plan.

Communications

Risk Assessment:

What is the risk of not being able to support the plan from a communications standpoint?

Rate the risk on a scale of 1 to 10 with 1= low risk and 10 = high risk: ...

Workstream Status Report - Sales

Pre-Close Period

• Short-Term target list for short-term wins
• Establish opportunity input, tracking, and reporting in Salesforce
• Define marketing support
• Determine dedicated resources for support sales activity
• Define sales enablement activity / owners

DAY ONE (Close Phase)

• Key talking points for Sales
• Product introduction, product information resource center ...

When and What to Report for a Post-Merger Integration

What do you report? Each team member will provide the following to the M&A Task Force leader: Key Actions/Accomplishments During the Past Week, Key Issues/Decisions Required, Potential Solutions/Help Needed, Next Steps/Actions

How is it reported? Task Force Leaders compile the individual team member reports into a team report and submit it weekly to the IMO. Alternatively, Task Force Leaders may bring the team's report to a regularly scheduled IMO meeting ... 

Integration Issue Form and Issue Log

Issues are problems, gaps, inconsistencies, or conflicts that occur during the an M&A integration. Issues can include problems with the employees, technology, shortages, or any other problem that has a negative impact.  If issues remain unresolved, the integration may suffer delays and overruns. Each issue should be monitored and assigned an owner.

Integration Risk Form and Risk Log

A risk is an event that has not happened while an issue is something that has happened. 

As you identify each risk, determine which integration team member will be responsible for tracking and reporting it. The owner of the risk is responsible for implementing a plan to resolve a risk if it becomes an issue.

Prioritize your integration risks based on the likelihood that they will occur and the severity of the problem if they do occur.

Integration Dependency Form and Dependency Log

Dependencies mandate tasks be executed in a specific sequence. They should be rigorously tracked because they can help you:

• Determine the right order of activities in the M&A integration.
• Calculate the critical path of the integration
• Identify resource and scheduling issues 
• Identify opportunities to accelerate the schedule

Post-Merger Integration Tracking Tool and Best Practices Meeting

When it comes to mergers and acquisitions, experience counts. The first deal a buyer does will always be the hardest. With each subsequent deal, a buyer will learn more about M&A. Acquirers should document what worked, as well as what didn’t, so they don’t lose lessons learned. 

Example of Lessons Learned Report

The two-page document is an example on the data collected by The Steering Committee, Integration Team, and Task Forces about what went well during a merger and what should be changed for the next Integration. The two-page Lessons Learned Word template is also provided.

On chartering the team(s) Review the Charters semi-monthly to ensure Task Forces are consistently on track

On creating, reviewing, and approving Detailed Project Plans Include fewer people in the review process (it took too long) ...

Communication Tools

8 M&A Communication Tools

Suggested Core Message Content for Stakeholders Employee Communications Survey Communications Planning Matrix Example: Communications Planning Matrix Communication Effectiveness Criteria Communication Event Evaluation Form Acquisition Press Release Outline Announcement Presentation Outline to Acquirer’s Employee Announcement Presentation Outline to Acquired Company’s Employees

Day -3 Through Day 1 M&A Communications Plan

• FTC gives indication that clearance is likely
• Confirm all final communication documents are uploaded to SmartSheet
• FTC Clears transaction to close
• Press release related to HSR completion
• Issue Corporate Acquired Co Investors Press Release ...

M&A Communications Plan: Announcement to Close

Communication Plan includes over 300 tasks from Announcement to Close for:

Customers & Partners

Legislators

M&A Day 1 Answers to Employee Frequently Asked Questions

Excerpt from answers to employees faqs.

• Is the purchase/sale of Acquiree to Acquirer finalized? Yes. The U.S. Department of Justice (DOJ) and Acquirer have entered into an agreement which permitted the acquisition to proceed. The Acquirer and Acquiree have both received Board and Shareholder approval and we have officially closed the deal.  
• What Acquiree offices are included in the sale? All Acquiree’s operations in North America, Europe, and Asia are included in the deal..

Information Technology: Day 1 Answers to Frequently Asked Questions

Most IT processes and procedures will remain unchanged on Day 1. Acquired Co. and Acquirer’s IT teams will be working closely together over the next several months to bring our IT systems together in the way that best suits the needs of the business. In the meantime, review the FAQs below to learn more about the IT transition and what it means for you. For even more information, check out the FAQ on Integration Central at http://www.ourcompany.com/integration ...

Acquisition Signing Day Communications Schedule

• Steering Committee Call to Review Communication Plan
• Acquirer Press Release Distribution
• Acquired Co. Press Release Distribution
• Send BU Meeting Invites
• BU Employee Calls
• BU Customer Calls
• BU Customer Email
• Supplier Calls …

Post-Merger Organizational Announcements: Complete by 90 Days

• Functional leaders and/or HR will work with Communications to publish an informational article in the integration newsletter. Broad employee announcements will only be made after all affected employees have been personally communicated with.
• Employee severances will be handled within the functions, in conjunction with HR. No formal communication will be issued regarding individual severances. Exceptions will be handled on a case-by-case basis.

M&A Day 1 / Week 1 Letter to Acquirer’s Leaders

Once we receive confirmation of the close date, a member of each team should reach out to facility managers/site contacts at each of the locations you’re planning to visit to discuss the day and time of each site event and your travel logistics.

Email all facility managers a copy of the Facility Managers Guide and your Welcome Week Schedule. Both are available on the Communication Document library in Smartsheet.

It may also be helpful for you to discuss any key issues or concerns the workforce has, as you prepare for meeting with employees during your visit. Some questions to consider...

Post-Merger Integration Update from CEO

First page of 3-page merger integration update.

From: CEO To: Employees

It’s now been three months since we combined our companies. I’d like to explain what integration challenges lie ahead and how you can continue to help.

First, I thank you all for your cooperation and hard work. Integrating two companies is tough and I recognize that many of you have put in a lot of additional effort to help the two companies begin operating as one. I thank everyone for their patience ...

Company Merger Announcement Template

The following includes the information to cover when announcing a merger or acquisition plus the guidelines to follow when writing the announcement.

Acquiring Company to Acquire Acquired Company (possibly mention price)

Other notable information

Paragraph 1: Announcement . . .

M&A Integration Communication Matrices by Function

Matrices completed by five work streams on m&a integrations. includes instructions..

Instructions

Complete the 8 columns of the communication matrix with the following information: 

What type of message is being conveyed?

·       The type of announcement; the main subject of the message

Why is the message being conveyed? . . .

How to Communicate Mergers or Acquisitions to Your Customers

Examples of M&A communications to customers from three different acquirers. 

Excerpt from first example:

T4 has recently announced its agreement to purchase OCN to become one of the foremost business service providers in North America. This provides our customers the opportunity to access an enhanced service portfolio over a larger geographic area.  T4 is and will remain committed to supporting our customers’ mission critical requirements ... 

Private Equity Acquisition - Talking Points and Answers to Employee FAQs

Talking Points for Executives at Employee Meetings Answers to Employee FAQs

Excerpt from Talking Points for Executives at Employee Meetings

• Welcome everyone! It’s a pleasure to meet with you today. We’ve invited you here to celebrate the announcement of our acquisition by a highly regarded, successful private equity firm,____________.  
• Our acquirer provides management and oversight for the multiple businesses in their portfolio, which will soon include our company . . .

Answers to Employee Post-Merger Integration Questions

Answers to 43 common frequently asked questions by employees on the front-end of an post-merger integration.

• Will offices or other facilities be closed? For the time being there will be no changes and we will continue to go to market as we have in the past. We will begin immediately to get to know each other and develop plans to combine our businesses in the most effective way ...

CEO Letter to Employees about Acquisition

Example of a CEO Letter to Employees in a Downloadable, Easy-to-Customize Word File

TO:  All Employees

SUBJECT:  Acquisition by ABA

Today we announced that OCN Inc. has agreed to be acquired by ABA. Upon closure of the deal, OCN will become part of the ABAs worldwide organization. Our combined operations will have revenue of nearly $500 million and employ approximately ... 

Acquisition Announcement Letter to Employees

TO: Employees

SUBJECT: Acquisition

Today marks a historic and exciting milestone for all of us: the transaction to combine the Acquirer and Acquired Co. is complete. Together, we will form a stronger business, drive further growth and innovation, and create more value for our employees, customers and stakeholders ...

Welcome Letter to Employees After an Acquisition

TO: Acquired Co. and Acquirer Employees

Today, we have completed the acquisition of Acquired Co. We have the unique opportunity to build upon our complementary portfolio, strong businesses, recognized brands and quality products to become one of the leading companies in our industry. To our newest employees, let me be the first to welcome you to Acquirer...

Company Merger Announcement Letter to Employees

Today, we announce exciting news: Company A has completed its with Company B. This is an important day for our organization and one that ensures we remain a highly competitive global company.

We plan to quickly integrate the company and finalize the corporate organization structure within the next 90 days. The success of our integration effort will be driven by how effectively our employees work together to deliver value to our customers and results to our bottom line ...

Merger Announcement Letter to Employees

FROM: President

SUBJECT:  Merger Announcement 

Acquirer, Inc. announces that the merger with Acquiree, Inc. is now complete. Today marks the beginning of a new era for our united companies. 

News of this merger is very positive for our customers, our employees, and our communities. The combination of our companies brings ...

Acquisition Letter to Customers

Dear Customer,

Today, we announce exciting news: Company A has completed its acquisition of Company B. This combination creates an organization even better able to serve customers and compete in the global marketplace.

Our new name is Company AB and our company's website is now CompanyAB.com. The name change symbolizes our intention to broader our business platform and deliver more value to our customers.

We know our success is dependent on your success . . .

Company Merger Letter to Customers

We are delighted to inform you that our company is merging with Dodson, Inc., a leader in our industry. There will be minimal disruptions to our business due to the change in ownership. Our leadership team, our headquarters, and our products will remain the same. That means no interruptions in service to you.

Our new owner has the funding to grow our business in a way that will help us realize our full potential and serve you even better in the future ...

Letter to Customers After an Acquisition

We have announced exciting news: Acquirer and Acquired Co. have completed the transaction to merge our operations.

This is a game-changing combination which will provide us with the scale, geographic reach, and capabilities to solidify our position as a leading provider of materials in our industry. Going forward, you will receive even more value from our products:

• We will have a greater portfolio of quality products and a family of brands as well as increased capabilities to innovate superior products and systems 
• We will tap into Acquired Co.’s industry-leading technology ...

Acquisition Announcement to Suppliers and Answers to Supplier FAQs

Acquisition Announcement to Suppliers Answers to Supplier FAQs

Excerpt from Supplier FAQs

•  What is the purpose for Global Procurement? To provide the largest volume opportunity for our supplier business partners.  We believe that with larger volumes the supply base’s manufacturing cost will be lower , thereby reducing our cost.  
•  What are the short and long-term implications? Short Term ...

Company Merger Letter to Vendors

Dear Valued Supplier,

Today, we announce exciting news: Company A has completed its acquisition of (merger with) Company B. This combination creates an organization even better able to serve customers and compete in the global marketplace.

Our new name is Company AB and our company's website is now CompanyAB.com. The name change symbolizes our intention to broaden our business platform and deliver more value to our customers.

We are excited about what the new Company AB has to offer: . . .

M&A Communication Planning Matrix

Supplier All current contracts remain in force and will be honored. No interruption in invoicing or bill paying process. All valid outstanding invoices will be paid timely.

Managers No changes in existing organization, all current management positions are unchanged. Merger is good for the business and will stimulate growth, but there is work to do to integrate with new entity. Function/ department specific message as determined by responsible Executive Committee member. Key message point to be delivered to employees in groups and reinforced in individual discussions. . .

Human Resources M&A Survey on Resources Needed

Three-page HR survey tool covering 10 key questions.

1. Please describe the anticipated level of change from the merger in your region:

a. No change  b. Minimal change  c. Moderate change  d. Significant change  e. Unable to anticipate level of change at this time

Stakeholder Analysis Template for a Post Merger Integration

Spreadsheet that includes the following columns for each stakeholder group:

• Stakeholder concerns
• Ability to influence 
• Change impact
• Resource requirements

M&A Communications: Core Messages Example

The example of a merger core messages document serves as content for various M&A announcements and helps ensure consistent communications throughout the organizations. The Core Message Word template is also provided.

M&A Day 1 Onboarding Guide

Today, marks the beginning of our new organization. This Day 1 Onboarding Guide is designed to help you understand changes that are taking place (or will take place) and any actions you may need to take.

The purpose of this guide is to explain:

• What you need to know now (Now: this week)
• What you'll need to know and do in the very near future
• When other changes will take place and when you can expect to hear more about them

The Four Post-Merger Integration Talent Retention Planning Steps

During mergers, people reexamine how the organization being created fits with their personal goals and ideals. As leaders, it is important to identify those individuals most critical to the success of the merger and “re-recruit” them to stay. This document is intended to give leaders a framework for organizing their thoughts on re-recruitment. 

Communication of New Benefits Plan Post-Acquisition

• Communication of New Benefits Plan 
• Talking Points
• Assumptions
• Timeline for Communicating Benefits Program

Post-Merger Integration Compensation, Benefits, and Policy Changes

Acquiree's Pre-Merger Compensation and Benefits Plan and the Acquirer's Post-Merger Changes in 40 Areas:

• Salary Plans
• Incentive Plans (Cash)
• Restricted Stock
• Exempt Overtime
• Overtime Meals
• Call-Out Pay
• Shift Differential
• Cafeteria Plan ...

Human Resources Acquisition Integration Plan

20-page detailed Human Resources Acquisition Integration Plan that covers:

• Organization Comparative Analysis: What are the key similarities and differences between the 2 organizations? How do we operate currently?
• Future State Recommendation: How will we operate in the future?
• Day 1 Items: What actions do we need to take at close?
• Risk Analysis: What are the risks associated with transition? Early Wins: Are there any immediate actions we can take to demonstrate benefits and success?
• Outstanding Issues & Decisions: What open issues still need to be resolved in order to realize transition?. . .

Human Resources Post-Merger Integration Project Plan

The Human Resources Post-Merger Integration Project Plan covers tasks for organization planning, policies, benefits, communication, compensation, and HRIS systems.

Excerpt from Plan 

A Primer on Talent Assessment and Retention

“AMA study found that 25% of top performers leave within 90 days of major change event”

I. Reasons Why Talent Leaves:

• Targeted by recruiters/competition
• Net/net perceive they are “worse off”
• Perception of loss of sponsor/access to key decision makers
• Changes to reporting relationships/key job responsibilities
• Loss of compensation/benefits
• Perception job will not meet career goals

II. Talent Assessment: ...

Example of Employee Communication about Post-Merger Jobs

Although the integration will bring some job eliminations and job changes, the majority of roles within the combined organization will not be impacted. A necessary part of any integration is defining the new organization and opportunities as well as eliminating duplicate roles. When this occurs, we will communicate with impacted employees their specific options. 

Our goal is to share the majority of organizational decisions within 90 days after Close ...

M&A HR Due Diligence: Side-by-Side Comparison of the HR Programs

11-page comprehensive comparison of HR Programs of the Acquirer and Acquiree in 125 Areas.

The programs are grouped into the following categories:

• Defined Benefit Plans
• Retiree Medical Plan
• Defined Contribution Plan
• Health And Welfare Plans
• Career Development

M&A HR Due Diligence Tool

9-page list of data to gather to assess HR

Identify potential synergies/opportunities in these categories:

• Management Team
• Compensation and Benefits
• Recruiting ...

Employee Retention Bonus Agreement

This Retention Bonus Agreement (the "Agreement") is made and entered into effective as of October 1, 2030 (the 'Effective Date"), by and between John Doe (the "Employee") and ABC, Inc. (the "Company").

         A. The Company has announced the execution of an Agreement and Plan of Merger pursuant to which the Company may be acquired by another company. The Board of Directors of the Company (the "Board") recognizes that such announcement can be a distraction to the Employee and can cause ...

Integration Management Tools

• Day 1 Communication Plan
• Communication Planning Template
• Cross Project Coordination Template
• Integration FAQ
• Issue Escalation Template
• Integration Scorecard Tool
• Post Integration Survey
• A Primer on Governance
• Quick Wins Tool
• Risk Management Template
• Sample Welcome Letter
• IMO Best Practices. . .

Post-Merger Integration RACI Matrix

M&A Team Roles and M&A Leaders During an Integration

Steering committee.

The Steering Committee is typically made up of two to seven senior executives from both companies. Members serve in an oversight role for the entire M&A integration by providing sponsorship, making key strategic decisions, and approving integration plans.

Integration Manager

The Integration Management Office (IMO) is led by the Integration Manager, a senior executive in the acquiring firm. The Integration Manager is responsible for facilitating the work of the Integration Management Office, providing guidance and direction to the  Work Streams ...

M&A Clean Teams: Competitively Sensitive Information

Confidential Information

• Industry reports or analysis prepared by third parties
• General information regarding current products and services
• Historical aggregated financial data, including aggregate revenues
• Information regarding the organisation of systems and processes (e.g. "back office" systems and processes like billing, IT and accounting). . . .

Invitation to Functional Team Leaders and Overview of Integration

Two letters, one from the CEO and and the other from the Integration Manager, emailed to team leaders that provide information on the role of team leaders, the hierarchy of teams, the mission, team guidelines, synergy targets, scope of the integration, meeting schedule, and team launch meeting.

Post-Merger Integration Guidelines

Example on how the the M&A Steering Committee and Integration Team will work together to determine governance, their reporting relationship, the process for making decisions, resolving issues, etc.

Finance Team Post-Merger Integration Charter

To ensure the full and seamless integration of target’s finance operations into Buyer’s finance organization by Day 90 post-Close. We will utilize best practices, regardless of origin, and act with speed to capture operational and transactional value.

Our key objectives are:

• To put in place the appropriate financial measures to gain control of the business on Day1, creating a compliant control environment, ensuring reporting accuracy, and consolidating general ledger ...

8 Workstream Post-Merger Integration Charters

8 Carve-Out Workstream Charters: Finance, Sales, IT, Legal, Manufacturing, Divestment, HR, & Communications

Finance Integration Charter

In Scope   1. Budget Process 2. Insurance Coverage 3. Limits of Authority 4. Accounting Policies  5. Reporting, process & tools 6. Purchase Price Accounting Exercise . . .

How to Create an M&A Integration Team Charter

Instructions on how to create charters to document the mission, goals, scope, boundaries, and deliverables of each team. Plus a 2-page charter example and 2-page Word template.

Case Study Exercise - Creating an HR Integration Team Charter

Team Scope/Objective

• Integrate compensation, benefits, stock options plans, employee development, and recruiting & retention processes. Address employee issues about the integration in a highly responsive, timely manner. Stay within budget allocated to the HR Task Force (which is to be determined).

Case Study Exercise - Creating a Product Development Integration Team Charter

• Integrate software development efforts. Improve quality and instill process discipline into operations. 

Case Study Exercise - Creating an Information Technology Integration Team Charter

• Integrate IT infrastructure as quickly as possible to support customers and core business processes.  Also, integrate IT systems to enable SOX compliance.

Case Study Exercise - Creating a Sales Integration Team Charter

• Integrate sales and marketing processes within 3 months.  Automate the sales reporting process and train the sales staff.  Achieve cross-selling synergies.

Operating Style Analysis (Part I)

• What aspects of the way your organization operates contribute most to its success/effectiveness?
• What characteristics of the way your company operates most hamper or interfere with its ability to compete?
• List the company’s operating strengths.  (What does it do best?)
• What would you identify as the company’s operating weaknesses?  (Where is the company most vulnerable or least effective?) ...

Operating Style Analysis (Part II)

1. Spending Habits:  Frugal or Free Spending Comments regarding this issue: __________________________________________  

2. Decision-Making Process:  Deliberate or Expeditious Comments regarding this issue: __________________________________________  

3.  Power and Authority ...

Cultural Due Diligence Interview Results

1. How do people feel about being merged/acquired?

The corporate perspective is different from the field’s perspective. Here at headquarters the questions are, “Is there room at the inn?” and “Will I go to Atlanta?” In the field, people are wondering if they will have to work for less money. Some are angry that it came to this. Did the CEO and the SVP just sell us out? People’s emotions run the gamut from “How could you do this?” to “What took you so long?”

It’s no shock that we merged, but people are set back on their heels that it is this acquirer...

M&A Culture Assessment

Listed below are a number of cultural dimensions and indices that are organized across a continuum.

Step 1: Review each cultural characteristic and place an A in the column that most closely represents your perception of the Acquirer’s culture. Step 2: Place B in the column that most closely represents the Acquired Company’s current culture. Step 3: Calculate the absolute difference between each rating to determine the largest culture gaps ...

Four Levels of Change Survey

An assessment of how an organization’s culture influences its ability to function as an adaptive system.

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• Acquisition Planning in Business Explained

In today’s business world, there are more large-scale acquisitions than ever before. In a competitive and increasingly financially constrained environment, businesses across all industries are pursuing new ventures.   However, instead of building from scratch, many businesses choose to acquire existing operations from competitors or other providers. From increasing market share to expanding their portfolio, company acquisitions are used as a growth strategy in many ways.

That said, the acquisition process can make or break the future of the new enterprise. This is because acquisition in business can be a complex and lengthy affair. Enter acquisition planning.

What is Acquisition Planning?

In acquisition planning, a company identifies and builds relationships with potential targets for acquisition to determine whether those targets meet their strategic criteria. Companies do this by outlining a comprehensive business acquisition strategy and defining the process involved in implementing it.

What is the acquisition strategy in the merger and acquisition process meant to achieve? By laying out the acquisition processes, criteria for potential targets, timelines, risk management, due diligence, and other factors, the acquirer can determine who meets their agenda, as well as ensure a smooth and uneventful acquisition process.

This process is not to be confused with acquisition planning in the procurement process, which instead sets out a plan for acquiring large or complex items as required by the Federal Acquisition Regulation (FAR).

Business Acquisition Process

Although involved parties try to get to the finish line —or in this case, the dotted line—as soon as possible, the mergers and acquisitions process has many steps and can take anywhere from six months to several years to complete.

Assuming the potential target companies have been identified, a typical deal includes the following steps:

Make an Acquisition Plan

Deciding what you want to achieve enables you to get the most out of the acquisition process. There are many reasons why a company would want to acquire another: Growth into new markets, increase in human resources, geographic growth, and eliminating competition are just a few of the potential reasons.

Build an Acquisition Team

Valuation analysis, research and due diligence, preparation of documents.

Documents required for the process include:

• Non-disclosure agreement
• Letter of Intent
• Confidential information memorandum
• Indication of interest
• Purchase agreement

First Offer and Negotiations

Contract signing, financial strategy and integration.

Top Acquisition Planning Examples

Some acquisitions are famous for how the process was carried out or the eventual success of the new entity.

One company that has been touted for carrying out successful acquisitions is Amazon. In 2017, it was looking to expand its operations into physical stores and identified Whole Foods as a worthy addition to its portfolio.

Amazon initiated an extensive acquisition plan, starting with a planning process and resulting in integration shortly after ownership transfer took place. Amazon acquired Whole Foods for a total of $13.7 billion in a move that has since proven to be successful.

Another famous example is Facebook’s acquisition of WhatsApp in 2014. At the time, analysts touted $22 billion as too high a price for a relatively new communication app. Today, the acquisition has proven to be a strategic business move, with WhatsApp users reaching 2 billion worldwide .

Pros and Cons of Acquisition Planning

Analysts recommend acquisition planning for many reasons, including the following:

• It gives the involved parties a template for carrying out the process, ensuring no steps are overlooked and all the necessary boxes are checked.
• The process of acquisition planning gives the acquirer time to evaluate the target company, allowing for proper research and due diligence.
• Acquisition planning coordinates all involved parties, from analysts to executives.
• Approaching an acquisition methodically increases the chances of success of the merger.

However, the process can also come with a few downsides. For one, following standard merger and acquisition strategies can be detrimental to the deal if those strategies are misinformed or outlined with little research.

Additionally, the pressure to close a deal quickly can guide managers into premature conclusions that may not be revisited if not included in the plan.

Increase Your Chance of Success

Given a lack of proper planning, mergers and acquisition strategies will fail. Synario can help you gain a prospective view of your company’s financial future with our financial modeling software .

Contact us to learn more about how companies can identify opportunities and mitigate challenges.

Featured Article

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FAC Number: 2024-05 Effective Date: 05/22/2024

Part 7 - Acquisition Planning

7.000 scope of part., subpart 7.1 - acquisition plans, 7.101 definitions., 7.102 policy., 7.103 agency-head responsibilities., 7.104 general procedures., 7.105 contents of written acquisition plans., 7.106 additional requirements for major systems., 7.107 additional requirements for acquisitions involving consolidation, bundling, or substantial bundling., 7.107-1 general., 7.107-2 consolidation., 7.107-3 bundling., 7.107-4 substantial bundling., 7.107-5 notifications., 7.107-6 solicitation provision., 7.108 additional requirements for telecommuting., subpart 7.2 - planning for the purchase of supplies in economic quantities, 7.200 scope of subpart., 7.201 [reserved], 7.202 policy., 7.203 solicitation provision., 7.204 responsibilities of contracting officers., subpart 7.3 - contractor versus government performance, 7.300 [reserved], 7.301 definitions., 7.302 policy., 7.303 [reserved], 7.304 [reserved], 7.305 solicitation provisions and contract clause., subpart 7.4 - equipment acquisition, 7.400 scope of subpart., 7.401 acquisition considerations., 7.402 acquisition methods., 7.403 general services administration assistance and omb guidance., 7.404 contract clause., subpart 7.5 - inherently governmental functions, 7.500 scope of subpart., 7.501 [reserved], 7.502 applicability., 7.503 policy..

This part prescribes policies and procedures for-

(a) Developing acquisition plans;

(b) Determining whether to use commercial or Government resources for acquisition of supplies or services;

(c) Deciding whether it is more economical to lease equipment rather than purchase it; and

(d) Determining whether functions are inherently governmental.

As used in this subpart-

Acquisition streamlining means any effort that results in more efficient and effective use of resources to design and develop, or produce quality systems. This includes ensuring that only necessary and cost-effective requirements are included, at the most appropriate time in the acquisition cycle, in solicitations and resulting contracts for the design, development, and production of new systems, or for modifications to existing systems that involve redesign of systems or subsystems.

Life-cycle cost means the total cost to the Government of acquiring, operating, supporting, and (if applicable) disposing of the items being acquired.

Order means an order placed under a-

(1) Federal Supply Schedule contract; or

(2) Task- order contract or delivery- order contract awarded by another agency, ( i.e., Governmentwide acquisition contract or multi-agency contract ).

Planner means the designated person or office responsible for developing and maintaining a written plan, or for the planning function in those acquisitions not requiring a written plan.

(a) Agencies shall perform acquisition planning and conduct market research (see part  10 ) for all acquisitions in order to promote and provide for—

(1) Acquisition of commercial products or commercial services , or to the extent that commercial products suitable to meet the agency’s needs are not available, nondevelopmental items , to the maximum extent practicable ( 10 U.S.C. 3453 and 41 U.S.C. 3307 ); and

(2) Full and open competition (see part  6 ) or, when full and open competition is not required in accordance with part  6 , to obtain competition to the maximum extent practicable, with due regard to the nature of the supplies or services to be acquired ( 10 U.S.C. 3206(a)(1) and 41 U.S.C. 3306a)(1) ).

(3) Selection of appropriate contract type in accordance with part  16 ; and

(4) Appropriate consideration of the use of pre-existing contracts, including interagency and intra-agency contracts, to fulfill the requirement, before awarding new contracts. (See 8.002 through 8.004 and subpart  17.5 ).

(b) This planning shall integrate the efforts of all personnel responsible for significant aspects of the acquisition . The purpose of this planning is to ensure that the Government meets its needs in the most effective, economical, and timely manner. Agencies that have a detailed acquisition planning system in place that generally meets the requirements of 7.104 and 7.105 need not revise their system to specifically meet all of these requirements.

The agency head or a designee shall prescribe procedures f or the following:

(a) Promoting and providing for full and open competition (see part  6 ) or, when full and open competition is not required in accordance with part  6 , for obtaining competition to the maximum extent practicable, with due regard to the nature of the supplies and services to be acquired ( 10 U.S.C. 3206(a)(1) and 41 U.S.C. 3306(a)(1) ).

(b) Encouraging offerors to supply commercial products or commercial services , or to the extent that commercial products suitable, to meet the agency needs are not available, nondevelopmental items in response to agency solicitations ( 10 U.S.C. 3453 and 41 U.S.C. 3307 ).

(c) Ensuring that acquisition planners address the requirement to specify needs, develop specifications, and to solicit offers in such a manner to promote and provide for full and open competition with due regard to the nature of the supplies and services to be acquired ( 10 U.S.C. 3206(a)(1) and 41 U.S.C. 3306(a)(1) ). (See part  6 and 10.002 .)

(d) Ensuring that acquisition planners document the file to support the selection of the contract type in accordance with subpart 16.1 .

(e) Establishing criteria and thresholds at which increasingly greater detail and formality in the planning process is required as the acquisition becomes more complex and costly, including for cost-reimbursement and other high-risk contracts ( e.g. , other than firm-fixed-price contracts) requiring a written acquisition plan. A written plan shall be prepared for cost reimbursement and other high-risk contracts other than firm-fixed-price contracts, although written plans may be required for firm-fixed-price contracts as appropriate.

(f) Ensuring that the statement of work is closely aligned with performance outcomes and cost estimates.

(g) Writing plans either on a systems basis, on an individual contract basis, or on an individual order basis, depending upon the acquisition .

(h) Ensuring that the principles of this subpart are used, as appropriate, for those acquisitions that do not require a written plan as well as for those that do.

(i) Designating planners for acquisitions .

(j) Reviewing and approving acquisition plans and revisions to these plans to ensure compliance with FAR requirements including 7.104 and part 16 . For other than firm-fixed-price contracts, ensuring that the plan is approved and signed at least one level above the contracting officer .

(k) Establishing criteria and thresholds at which design-to-cost and life-cycle-cost techniques will be used.

(l) Establishing standard acquisition plan formats, if desired, suitable to agency needs.

(m) Waiving requirements of detail and formality, as necessary, in planning for acquisitions having compressed delivery or performance schedules because of the urgency of the need.

(n) Assuring that the contracting officer , prior to contracting , reviews:

(1) The acquisition history of the supplies and services; and

(2) A description of the supplies , including, when necessary for adequate description, a picture, drawing, diagram, or other graphic representation.

(o) Ensuring that agency planners include use of the metric system of measurement in proposed acquisitions in accordance with 15 U.S.C.205b (see 11.002 (b)) and agency metric plans and guidelines.

(p) Ensuring that agency planners -

(1) Comply with the policy in 11.002 (d) regarding procurement of sustainable products and services (as defined in 2.101 ) in accordance with subpart 23.1 ;

(2) Comply with the Guiding Principles for Sustainable Federal Buildings and Associated Instructions (Guiding Principles), for the design, construction , renovation, repair, or deconstruction of Federal buildings (see 36.104). The Guiding Principles can be accessed at https://www.sustainability.gov/​pdfs/​guiding_​principles_​for_​sustainable_​federal_​buildings.pdf ; and

(3) Require contractor compliance with Federal environmental requirements, when the contractor is operating Government-owned facilities or vehicles, to the same extent as the agency would be required to comply if the agency operated the facilities or vehicles.

(q) Ensuring that acquisition planners specify needs and develop plans, drawings, work statements, specifications, or other product or service requirements ( e.g. , help desks, call centers, training services, and automated self-service technical support) descriptions that address information and communication technology (ICT ) accessibility standards (see 36 CFR 1194.1 ) in proposed acquisitions and that these standards are included in requirements planning (see subpart  39.2 ).

(r) Making a determination, prior to issuance of a solicitation for advisory and assistance services involving the analysis and evaluation of proposals submitted in response to a solicitation , that a sufficient number of covered personnel with the training and capability to perform an evaluation and analysis of proposals submitted in response to a solicitation are not readily available within the agency or from another Federal agency in accordance with the guidelines at 37.204 .

(s) Ensuring that no purchase request is initiated or contract entered into that would result in the performance of an inherently governmental function by a contractor and that all contracts or orders are adequately managed so as to ensure effective official control over contract or order performance.

(t) Ensuring that knowledge gained from prior acquisitions is used to further refine requirements and acquisition strategies. For services, greater use of performance-based acquisition methods should occur for follow-on acquisitions .

(u) Ensuring that acquisition planners , to the maximum extent practicable-

(1) Structure contract requirements to facilitate competition by and among small business concerns; and

(2) Avoid unnecessary and unjustified bundling that precludes small business participation as contractors (see 7.107 ) ( 15 U.S.C. 631(j) ).

(v) Ensuring that agency planners on information technology acquisitions comply with the capital planning and investment control requirements in 40 U.S.C. 11312 and OMB Circular A-130.

(w) Ensuring that agency planners on information technology acquisitions comply with the information technology security requirements in the Federal Information Security Management Act ( 44 U.S.C. 3544 ), OMB’s implementing policies including Appendix III of OMB Circular A-130, and guidance and standards from the Department of Commerce’s National Institute of Standards and Technology.

(x) Ensuring that agency planners use project labor agreements when required (see subpart 22.5 and 36.104 Policy. ).

(y) Ensuring that contracting officers consult the Disaster Response Registry via https://www.sam.gov , Search Records, Advanced Search, Disaster Response Registry Search as a part of acquisition planning for debris removal, distribution of supplies , reconstruction, and other disaster or emergency relief activities inside the United States and outlying areas . (See 26.205 ).

(a) Acquisition planning should begin as soon as the agency need is identified, preferably well in advance of the fiscal year in which contract award or order placement is necessary. In developing the plan, the planner shall form a team consisting of all those who will be responsible for significant aspects of the acquisition , such as contracting , small business, fiscal, legal, and technical personnel. If contract performance is to be in a designated operational area or supporting a diplomatic or consular mission, the planner shall also consider inclusion of the combatant commander or chief of mission , as appropriate. The planner should review previous plans for similar acquisitions and discuss them with the key personnel involved in those acquisitions . At key dates specified in the plan or whenever significant changes occur, and no less often than annually, the planner shall review the plan and, if appropriate, revise it.

(b) Requirements and logistics personnel should avoid issuing requirements on an urgent basis or with unrealistic delivery or performance schedules, since it generally restricts competition and increases prices. Early in the planning process, the planner should consult with requirements and logistics personnel who determine type, quality, quantity, and delivery requirements.

(c) The planner shall coordinate with and secure the concurrence of the contracting officer in all acquisition planning . If the plan proposes using other than full and open competition when awarding a contract, the plan shall also be coordinated with the cognizant advocate for competition.

(d) The planner shall coordinate the acquisition plan or strategy with the cognizant small business specialist when the strategy contemplates an acquisition meeting the thresholds in 7.107-4 for substantial bundling unless the contract or task order or delivery order is totally set-aside for small business under part  19 . The small business specialist shall notify the agency Office of Small and Disadvantaged Business Utilization or the Office of Small Business Programs if the strategy involves-

(1) Bundling that is unnecessary or unjustified; or

(2) Bundled or consolidated requirements not identified as such by the agency (see 7.107 ).

(e) The planner shall ensure that a COR is nominated as early as practicable in the acquisition process by the requirements official or in accordance with agency procedures. The contracting officer shall designate and authorize a COR as early as practicable after the nomination. See 1.602-2 (d).

In order to facilitate attainment of the acquisition objectives, the plan must identify those milestones at which decisions should be made (see paragraph (b)(21) of this section). The plan must address all the technical, business, management, and other significant considerations that will control the acquisition . The specific content of plans will vary, depending on the nature, circumstances, and stage of the acquisition . In preparing the plan, the planner must follow the applicable instructions in paragraphs (a) and (b) of this section, together with the agency’s implementing procedures. Acquisition plans for service contracts or orders must describe the strategies for implementing performance-based acquisition methods or must provide rationale for not using those methods (see subpart  37.6 ).

(a) Acquisition background and objectives -

(1) Statement of need . Introduce the plan by a brief statement of need. Summarize the technical and contractual history of the acquisition . Discuss feasible acquisition alternatives, the impact of prior acquisitions on those alternatives, and any related in-house effort.

(2) Applicable conditions . State all significant conditions affecting the acquisition , such as-

(i) Requirements for compatibility with existing or future systems or programs; and

(ii) Any known cost, schedule, and capability or performance constraints.

(3) Cost. Set forth the established cost goals for the acquisition and the rationale supporting them, and discuss related cost concepts to be employed, including, as appropriate, the following items:

(i) Life-cycle cost . Discuss how life-cycle cost will be considered. If it is not used, explain why. If appropriate, discuss the cost model used to develop life-cycle-cost estimates.

(ii) Design-to-cost . Describe the design-to-cost objective(s) and underlying assumptions, including the rationale for quantity, learning-curve, and economic adjustment factors. Describe how objectives are to be applied, tracked, and enforced. Indicate specific related solicitation and contractual requirements to be imposed.

(iii) Application of should -cost . Describe the application of should -cost analysis to the acquisition (see 15.407-4 ).

(4) Capability or performance . Specify the required capabilities or performance characteristics of the supplies or the performance standards of the services being acquired and state how they are related to the need.

(5) Delivery or performance-period requirements . Describe the basis for establishing delivery or performance-period requirements (see subpart  11.4 ). Explain and provide reasons for any urgency if it results in concurrency of development and production or constitutes justification for not providing for full and open competition .

(6) Trade-offs . Discuss the expected consequences of trade-offs among the various cost, capability or performance, and schedule goals.

(7) Risks . Discuss technical, cost, and schedule risks and describe what efforts are planned or underway to reduce risk and the consequences of failure to achieve goals. If concurrency of development and production is planned, discuss its effects on cost and schedule risks.

(8) Acquisition streamlining . If specifically designated by the requiring agency as a program subject to acquisition streamlining , discuss plans and procedures to-

(i) Encourage industry participation by using draft solicitations , presolicitation conferences, and other means of stimulating industry involvement during design and development in recommending the most appropriate application and tailoring of contract requirements;

(ii) Select and tailor only the necessary and cost-effective requirements; and

(iii) State the timeframe for identifying which of those specifications and standards, originally provided for guidance only, shall become mandatory.

(b) Plan of action—

(1) Sources .

(i) Indicate the prospective sources of supplies or services that can meet the need.

(ii) Consider required sources of supplies or services (see part  8 ) and sources identifiable through databases including the Governmentwide database of contracts and other procurement instruments intended for use by multiple agencies available at https://www.contractdirectory.gov/contractdirectory/ .

(iii) Include consideration of small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns (see part  19 ).

(iv) Consider the impact of any consolidation or bundling that might affect participation of small businesses in the acquisition (see 7.107 ) ( 15 U.S.C. 644(e) and 15 U.S.C. 657q ). When the proposed acquisition strategy involves bundling , identify the incumbent contractors and contracts affected by the bundling .

(v) Address the extent and results of the market research and indicate their impact on the various elements of the plan (see part  10 ).

(2) Competition.

(i) Describe how competition will be sought, promoted, and sustained throughout the course of the acquisition . If full and open competition is not contemplated, cite the authority in 6.302 , discuss the basis for the application of that authority, identify the source(s), and discuss why full and open competition cannot be obtained.

(ii) Identify the major components or subsystems. Discuss component breakout plans relative to these major components or subsystems. Describe how competition will be sought, promoted, and sustained for these components or subsystems.

(iii) Describe how competition will be sought, promoted, and sustained for spares and repair parts. Identify the key logistic milestones, such as technical data delivery schedules and acquisition method coding conferences, that affect competition.

(iv) When effective subcontract competition is both feasible and desirable, describe how such subcontract competition will be sought, promoted, and sustained throughout the course of the acquisition . Identify any known barriers to increasing subcontract competition and address how to overcome them.

(3) Contract type selection . Discuss the rationale for the selection of contract type. For other than firm-fixed-price contracts, see 16.103 (d) for additional documentation guidance. Acquisition personnel shall document the acquisition plan with findings that detail the particular facts and circumstances, ( e.g. , complexity of the requirements, uncertain duration of the work, contractor’s technical capability and financial responsibility, or adequacy of the contractor’s accounting system), and associated reasoning essential to support the contract type selection. The contracting officer shall ensure that requirements and technical personnel provide the necessary documentation to support the contract type selection.

(4) Source-selection procedures. Discuss the source selection procedures for the acquisition , including the timing for submission and evaluation of proposals, and the relationship of evaluation factors to the attainment of the acquisition objectives (see subpart  15.3 ). When an EVMS is required (see FAR 34.202 (a)) and a pre-award IBR is contemplated, the acquisition plan must discuss-

(i) How the pre-award IBR will be considered in the source selection decision;

(ii) How it will be conducted in the source selection process (see FAR 15.306 ); and

(iii) Whether offerors will be directly compensated for the costs of participating in a pre-award IBR.

(5) Acquisition considerations.

(i) For each contract contemplated, discuss use of multiyear contracting , options , or other special contracting methods (see part  17 ); any special clauses, special solicitation provisions, or FAR deviations required (see subpart  1.4 ); whether sealed bidding or negotiation will be used and why; whether equipment will be acquired by lease or purchase (see subpart  7.4 ) and why; and any other contracting considerations. Provide rationale if a performance-based acquisition will not be used or if a performance-based acquisition for services is contemplated on other than a firm-fixed-price basis (see 37.102 (a), 16.103 (d), and 16.505 (a)(3)).

(ii) For each order contemplated, discuss-

(A) For information technology acquisitions , how the capital planning and investment control requirements of 40 U.S.C. 11312 and OMB Circular A-130 will be met (see 7.103 (v) and part  39 ); and

(B) Why this action benefits the Government, such as when-

(1) The agency can accomplish its mission more efficiently and effectively ( e.g., take advantage of the servicing agency ’s specialized expertise; or gain access to contractors with needed expertise); or

(2) Ordering through an indefinite delivery contract facilitates access to small business concerns, including small disadvantaged business concerns , 8(a) contractors, women-owned small business concerns , HUBZone small business concerns, veteran-owned small business concerns, or service-disabled veteran-owned small business concerns.

(iii) For information technology acquisitions using Internet Protocol, discuss whether the requirements documents include the Internet Protocol compliance requirements specified in 11.002 (g) or a waiver of these requirements has been granted by the agency’s Chief Information Officer.

(iv) For information technology acquisitions , identify the applicable ICT accessibility standard(s). When an exception or an exemption to the standard(s) applies, the plan must list the exception and/or exemption, and the item(s) to which it applies. For those items listing 39.204 or 39.205 (a)(1) or (2), the corresponding accessibility standard does not need to be identified. See subpart  39.2 and 36 CFR 1194.1 .

(v) For each contract (and order ) contemplated, discuss the strategy to transition to firm-fixed-price contracts to the maximum extent practicable. During the requirements development stage, consider structuring the contract requirements, i.e. , line items , in a manner that will permit some, if not all, of the requirements to be awarded on a firm-fixed-price basis, either in the current contract, future option years, or follow-on contracts. This will facilitate an easier transition to a firm-fixed-price contract, because a cost history will be developed for a recurring definitive requirement.

(6) Budgeting and funding. Include budget estimates, explain how they were derived, and discuss the schedule for obtaining adequate funds at the time they are required (see subpart  32.7 ).

(7) Product or service descriptions. Explain the choice of product or service description types (including performance-based acquisition descriptions) to be used in the acquisition .

(8) Priorities, allocations, and allotments . When urgency of the requirement dictates a particularly short delivery or performance schedule, certain priorities may apply. If so, specify the method for obtaining and using priorities, allocations, and allotments, and the reasons for them (see subpart  11.6 ).

(9) Contractor versus Government performance . Address the consideration given to OMB CircularNo.A-76 (see subpart  7.3 ).

(10) Inherently governmental functions . Address the consideration given to subpart  7.5 .

(11) Management information requirements . Discuss, as appropriate, what management system will be used by the Government to monitor the contractor’s effort. If an Earned Value Management System is to be used, discuss the methodology the Government will employ to analyze and use the earned value data to assess and monitor contract performance. In addition, discuss how the offeror ’s/contractor’s EVMS will be verified for compliance with the Electronic Industries Alliance Standard 748 (EIA-748), Earned Value Management Systems , and the timing and conduct of integrated baseline reviews (whether prior to or post award). (See 34.202 .)

(12) Make or buy. Discuss any consideration given to make-or-buy programs (see 15.407-2 ).

(13) Test and evaluation. To the extent applicable, describe the test program of the contractor and the Government. Describe the test program for each major phase of a major system acquisition . If concurrency is planned, discuss the extent of testing to be accomplished before production release.

(14) Logistics considerations . Describe-

(i) The assumptions determining contractor or agency support, both initially and over the life of the acquisition , including consideration of contractor or agency maintenance and servicing (see subpart  7.3 ), support for contracts to be performed in a designated operational area or supporting a diplomatic or consular mission (see 25.301-3 ); and distribution of commercial products or commercial services ;

(ii) The reliability, maintainability, and quality assurance requirements, including any planned use of warranties (see part  46 );

(iii) The requirements for contractor data (including repurchase data) and data rights, their estimated cost, and the use to be made of the data (see part  27 ); and

(iv) Standardization concepts, including the necessity to designate, in accordance with agency procedures, technical equipment as "standard" so that future purchases of the equipment can be made from the same manufacturing source.

(15) Government-furnished property . Indicate any Government property to be furnished to contractors, and discuss any associated considerations, such as its availability or the schedule for its acquisition (see 45.102 ).

(16) Government-furnished information. Discuss any Government information, such as manuals, drawings, and test data, to be provided to prospective offerors and contractors. Indicate which information that requires additional controls to monitor access and distribution ( e.g. , technical specifications, maps, building designs, schedules, etc.), as determined by the agency, is to be posted via the enhanced controls of the Governmentwide point of entry (GPE ) at https://www.sam.gov (see 5.102 (a)).

(17) Environmental and energy conservation objectives . Discuss—

(i) All applicable environmental and energy conservation objectives associated with the acquisition (see part 23 );

(ii) The applicability of an environmental assessment or environmental impact statement (see 40 CFR part 1502 );

(iii) The proposed resolution of environmental issues; and

(iv) Any sustainable acquisition requirements to be included in the solicitation and contract (see 11.002 and part 23 ).

(18) Security considerations .

(i) For acquisitions dealing with classified matters, discuss how adequate security will be established, maintained, and monitored (see subpart  4.4 ).

(ii) For information technology acquisitions , discuss how agency information security requirements will be met.

(iii) For acquisitions requiring routine contractor physical access to a Federally-controlled facility and/or routine access to a Federally-controlled information system , discuss how agency requirements for personal identity verification of contractors will be met (see subpart  4.13 ).

(iv) For acquisitions that may require Federal contract information to reside in or transit through contractor information systems, discuss compliance with subpart  4.19 .

(19) Contract administration . Describe how the contract will be administered. In contracts for services, include how inspection and acceptance corresponding to the work statement’s performance criteria will be enforced. In contracts for supplies or service contracts that include supplies , address whether higher-level quality standards are necessary ( 46.202 ) and whether the supplies to be acquired are critical items ( 46.101 ).

(20) Other considerations. Discuss, as applicable:

(i) Standardization concepts;

(ii) The industrial readiness program;

(iii) The Defense Production Act;

(iv) The Occupational Safety and Health Act;

(v) Support Anti-terrorism by Fostering Effective Technologies Act of 2002 (SAFETY Act) (see subpart  50.2 );

(vi) Foreign sales implications;

(vii) Special requirements for contracts to be performed in a designated operational area or supporting a diplomatic or consular mission ; and

(viii) Any other matters germane to the plan not covered elsewhere.

(21) Milestones for the acquisition cycle . Address the following steps and any others appropriate:

Acquisition plan approval.

Statement of work.

Specifications.

Data requirements.

Completion of acquisition -package preparation.

Purchase request.

Justification and approval for other than full and open competition where applicable and/or any required D&F approval.

Issuance of synopsis.

Issuance of solicitation .

Evaluation of proposals, audits, and field reports.

Beginning and completion of negotiations.

Contract preparation, review, and clearance.

Contract award.

(22) Identification of participants in acquisition plan preparation. List the individuals who participated in preparing the acquisition plan, giving contact information for each.

(a) In planning for the solicitation of a major system (see part  34 ) development contract, planners shall consider requiring offerors to include, in their offers , proposals to incorporate in the design of a major system -

(1) Items which are currently available within the supply system of the agency responsible for the major system , available elsewhere in the national supply system, or commercially available from more than one source; and

(2) Items which the Government will be able to acquire competitively in the future if they are likely to be needed in substantial quantities during the system’s service life.

(b) In planning for the solicitation of a major system (see part  34 ) production contract, planners shall consider requiring offerors to include, in their offers , proposals identifying opportunities to assure that the Government will be able to obtain, on a competitive basis, items acquired in connection with the system that are likely to be acquired in substantial quantities during the service life of the system. Proposals submitted in response to such requirements may include the following:

(1) Proposals to provide the Government the right to use technical data to be provided under the contract for competitive future acquisitions , together with the cost to the Government, if any, of acquiring such technical data and the right to use such data.

(2) Proposals for the qualification or development of multiple sources of supply for competitive future acquisitions .

(c) In determining whether to apply paragraphs (a) and (b) of this section, planners shall consider the purposes for which the system is being acquired and the technology necessary to meet the system’s required capabilities. If such proposals are required, the contracting officer shall consider them in evaluating competing offers . In noncompetitive awards, the factors in paragraphs (a) and (b) of this section, may be considered by the contracting officer as objectives in negotiating the contract.

(a) If the requirement is considered both consolidated and bundled, the agency shall follow the guidance regarding bundling in 7.107-3 , 7.107-4 , and 7.107-5 .

(b) The requirements of this section 7.107 do not apply-

(1) If a cost comparison analysis will be performed in accordance with OMB Circular A-76 (except 7.107-4 still applies);

(2) To orders placed under single-agency task- order contracts or delivery- order contracts, when the requirement was considered in determining that the consolidation or bundling of the underlying contract was necessary and justified; or

(3) To requirements for which there is a mandatory source (see 8.002 or 8.003 ), including supplies and services that are on the Procurement List maintained by the Committee for Purchase From People Who Are Blind or Severely Disabled or the Schedule of Products issued by Federal Prison Industries, Inc. This exception does not apply–

(i) When the requiring agency obtains a waiver in accordance with 8.604 or an exception in accordance with 8.605 or 8.706 ; or

(ii) When optional acquisitions of supplies and services permitted under 8.713 are included.

(a) Consolidation may provide substantial benefits to the Government. However, because of the potential impact on small business participation, before conducting an acquisition that is a consolidation of requirements with an estimated total dollar value exceeding $2 million, the senior procurement executive (SPE) or chief acquisition officer (CAO) shall make a written determination that the consolidation is necessary and justified in accordance with 15 U.S.C. 657q , after ensuring that-

(1) Market research has been conducted;

(2) Any alternative contracting approaches that would involve a lesser degree of consolidation have been identified;

(3) The determination is coordinated with the agency's Office of Small Disadvantaged Business Utilization or the Office of Small Business Programs;

(4) Any negative impact by the acquisition strategy on contracting with small business concerns has been identified; and

(5) Steps are taken to include small business concerns in the acquisition strategy.

(b) The SPE or CAO may determine that the consolidation is necessary and justified if the benefits of the acquisition would substantially exceed the benefits that would be derived from each of the alternative contracting approaches identified under paragraph (a)(2) of this section, including benefits that are quantifiable in dollar amounts as well as any other specifically identified benefits.

(c) Such benefits may include cost savings or price reduction and, regardless of whether quantifiable in dollar amounts-

(1) Quality improvements that will save time or improve or enhance performance or efficiency;

(2) Reduction in acquisition cycle times;

(3) Better terms and conditions; or

(4) Any other benefit.

(d) Benefits.

(1) Benefits that are quantifiable in dollar amounts are substantial if individually, in combination, or in the aggregate the anticipated financial benefits are equivalent to-

(i) Ten percent of the estimated contract or order value (including options ) if the value is $94 million or less; or

(ii) Five percent of the estimated contract or order value (including options ) or $9.4 million, whichever is greater, if the value exceeds $94 million.

(2) Benefits that are not quantifiable in dollar amounts shall be specifically identified and otherwise quantified to the extent feasible.

(3) Reduction of administrative or personnel costs alone is not sufficient justification for consolidation unless the cost savings are expected to be at least 10 percent of the estimated contract or order value (including options ) of the consolidated requirements, as determined by the SPE or CAO ( 15 U.S.C. 657q(c)(2)(B) ).

(1) Notwithstanding paragraphs (a) through (d) of this section, the approving authority identified in paragraph (e)(2) of this section may determine that consolidation is necessary and justified when-

(i) The expected benefits do not meet the thresholds for a substantial benefit at paragraph (d)(1) of this section but are critical to the agency's mission success; and

(ii) The procurement strategy provides for maximum practicable participation by small business.

(2) The approving authority is–

(i) For the Department of Defense, the SPE: or

(ii) For the civilian agencies, the Deputy Secretary or equivalent.

(f) If a determination is made that consolidation is necessary and justified, the contracting officer shall include it in the acquisition strategy documentation and provide it to the Small Business Administration (SBA) upon request.

(a) Bundling may provide substantial benefits to the Government. However, because of the potential impact on small business participation, before conducting an acquisition strategy that involves bundling , the agency shall make a written determination that the bundling is necessary and justified in accordance with 15 U.S.C. 644(e) . A bundled requirement is considered necessary and justified if the agency would obtain measurably substantial benefits as compared to meeting its agency's requirements through separate smaller contracts or orders .

(b) The agency shall quantify the specific benefits identified through the use of market research and other techniques to explain how their impact would be measurably substantial (see 10.001 (a)(2)(iv) and (a)(3)(vii)).

(c) Such benefits may include, but are not limited to-

(1) Cost savings;

(2) Price reduction;

(3) Quality improvements that will save time or improve or enhance performance or efficiency;

(4) Reduction in acquisition cycle times, or

(5) Better terms and conditions.

(d) Benefits are measurably substantial if individually, in combination, or in the aggregate the anticipated financial benefits are equivalent to-

(1) Ten percent of the estimated contract or order value (including options ) if the value is $94 million or less; or

(2) Five percent of the estimated contract or order value (including options ) or $9.4 million, whichever is greater, if the value exceeds $94 million.

(e) Reduction of administrative or personnel costs alone is not sufficient justification for bundling unless the cost savings are expected to be at least ten percent of the estimated contract or order value (including options ) of the bundled requirements.

(1) Notwithstanding paragraphs (a) through (e) of this subsection, the approving authority identified in paragraph (f)(2) of this subsection may determine that bundling is necessary and justified when

(i) The expected benefits do not meet the thresholds for a substantial benefit but are critical to the agency's mission success; and

(ii) The acquisition strategy provides for maximum practicable participation by small business concerns.

(2) The approving authority, without power of delegation, is–

(i) For the Department of Defense, the senior procurement executive ; or

(ii) For the civilian agencies is the Deputy Secretary or equivalent.

(g) In assessing whether cost savings and/or price reduction would be achieved through bundling , the agency and SBA shall -

(1) Compare the price that has been charged by small businesses for the work that they have performed; or

(2) Where previous prices are not available, compare the price, based on market research , that could have been or could be charged by small businesses for the work previously performed by other than a small business.

(h) If a determination is made that bundling is necessary and justified, the contracting officer shall include it in the acquisition strategy documentation and provide it to SBA upon request.

(1) Substantial bundling is any bundling that results in a contract or task or delivery order with an estimated value of—

(i) $8 million or more for the Department of Defense;

(ii) $6 million or more for the National Aeronautics and Space Administration, the General Services Administration, and the Department of Energy; or

(iii) $2.5 million or more for all other agencies.

(2) These thresholds apply to the cumulative estimated dollar value (including options ) of–

(i) Multiple-award contracts ;

(ii) Task orders or delivery orders issued against a GSA Schedule contract; or

(iii) Task orders or delivery orders issued against a task- order or delivery- order contract awarded by another agency.

(b) In addition to addressing the requirements for bundling (see 7.107-3 ), when the proposed acquisition strategy involves substantial bundling , the agency shall document in its strategy—

(1) The specific benefits anticipated to be derived from substantial bundling ;

(2) An assessment of the specific impediments to participation by small business concerns as contractors that result from substantial bundling ;

(3) Actions designed to maximize small business participation as contractors, including provisions that encourage small business teaming;

(4) Actions designed to maximize small business participation as subcontractors (including suppliers) at any tier under the contract, or order , that may be awarded to meet the requirements;

(5) The determination that the anticipated benefits of the proposed bundled contract or order justify its use; and

(6) Alternative strategies that would reduce or minimize the scope of the bundling , and the rationale for not choosing those alternatives.

(a) Notifications to current small business contractors of agency's intent to bundle .

(1) The contracting officer shall notify each small business performing a contract that it intends to bundle the requirement at least 30 days prior to the issuance of the solicitation for the bundled requirement.

(2) The notification shall provide the name, phone number and address of the applicable SBA procurement center representative (PCR), or if an SBA PCR is not assigned to the procuring activity , the SBA Office of Government Contracting Area Office serving the area in which the buying activity is located.

(3) This notification shall be documented in the contract file.

(b) Notification to public of rationale for bundled requirement . The agency is encouraged to provide notification of the rationale for any bundled requirement to the GPE, before issuance of the solicitation (see 5.201 ).

(c) Notification to the public of consolidation of contract requirements . The SPE or CAO shall publish in the GPE—

(1) A notice that the agency has determined a consolidation of contract requirements is necessary and justified (see 7.107-2 ) no later than 7 days after making the determination; the solicitation may not be publicized prior to 7 days after publication of the notice of the agency determination; and

(2) The determination that consolidation is necessary and justified with the publication of the solicitation . See 7.107-2 for the required content of the determination.

(d) Notification to the public of substantial bundling of contract requirements . The head of the agency shall publish in the GPE—

(1) A notice that the agency has determined that a procurement involves substantial bundling (see 7.107-4 ) no later than 7 days after such determination has been made; the solicitation may not be publicized prior to 7 days after the publication of the notice of the determination; and

(2) The rationale for substantial bundling with the publication of the solicitation . The rationale is the information required for inclusion in the acquisition strategy at 7.107-4 (b).

(e) Notification to SBA of follow-on bundled or consolidated requirements . For each follow-on bundled or consolidated requirement, the contracting officer shall obtain the following from the requiring activity and notify the SBA PCR no later than 30 days prior to issuance of the solicitation :

(1) The amount of savings and benefits achieved under the prior consolidation or bundling .

(2) Whether such savings and benefits will continue to be realized if the contract remains consolidated or bundled.

(3) Whether such savings and benefits would be greater if the procurement requirements were divided into separate solicitations suitable for award to small business concerns.

(4) List of requirements that have been added or deleted for the follow-on.

(f) Annual notification to the public of the rationale for bundled requirements. The agency shall publish on its website a list and rationale for any bundled requirement for which the agency solicited offers or issued an award. The notification shall be made annually within 30 days of the agency's data certification regarding the validity and verification of data entered in the Federal Procurement Data System to the Office of Federal Procurement Policy (see 4.604 ).

(g) Notification to public of bundling policy . In accordance with 15 U.S.C. 644(q)(2)(A)(ii) , agencies shall publish the Governmentwide policy regarding contract bundling , including regarding the solicitation of teaming and joint ventures, on their agency website.

The contracting officer shall insert the provision at 52.207-6 , Solicitation of Offers from Small Business Concerns and Small Business Teaming Arrangements or Joint Ventures ( Multiple-Award Contracts ), in solicitations for multiple-award contracts above the substantial bundling threshold of the agency (see 7.107-4 (a)).

In accordance with 41 U.S.C. 3306(f) , an agency shall generally not discourage a contractor from allowing its employees to telecommute in the performance of Government contracts. Therefore, agencies shall not-

(a) Include in a solicitation a requirement that prohibits an offeror from permitting its employees to telecommute unless the contracting officer first determines that the requirements of the agency, including security requirements, cannot be met if telecommuting is permitted. The contracting officer shall document the basis for the determination in writing and specify the prohibition in the solicitation ; or

(b) When telecommuting is not prohibited, unfavorably evaluate an offer because it includes telecommuting, unless the contracting officer first determines that the requirements of the agency, including security requirements, would be adversely impacted if telecommuting is permitted. The contracting officer shall document the basis for the determination in writing and address the evaluation procedures in the solicitation .

This subpart prescribes policies and procedures for gathering information from offerors to assist the Government in planning the most advantageous quantities in which supplies should be purchased.

(a) Agencies are required by 10 U.S.C. 3242 and 41 U.S.C.3310 to procure supplies in such quantity as-

(1) Will result in the total cost and unit cost most advantageous to the Government, where practicable; and

(2) Does not exceed the quantity reasonably expected to be required by the agency.

(b) Each solicitation for a contract for supplies is required, if practicable, to include a provision inviting each offeror responding to the solicitation -

(1) To state an opinion on whether the quantity of the supplies proposed to be acquired is economically advantageous to the Government; and

(2) If applicable, to recommend a quantity or quantities which would be more economically advantageous to the Government. Each such recommendation is required to include a quotation of the total price and the unit price for supplies procured in each recommended quantity.

Contracting officers shall insert the provision at 52.207-4 , Economic Purchase Quantity- Supplies , in solicitations for supplies . The provision need not be inserted if the solicitation is for a contract under the General Services Administration’s multiple award schedule contract program, or if the contracting officer determines that-

(a) The Government already has the data;

(b) The data is otherwise readily available; or

(c) It is impracticable for the Government to vary its future requirements.

(a) Contracting officers are responsible for transmitting offeror responses to the solicitation provision at 52.207-4 to appropriate inventory management/requirements development activities in accordance with agency procedures. The economic purchase quantity data so obtained are intended to assist inventory managers in establishing and evaluating economic order quantities for supplies under their cognizance.

(b) In recognition of the fact that economic purchase quantity data furnished by offerors are only one of many data inputs required for determining the most economical order quantities, contracting officers should generally take no action to revise quantities to be acquired in connection with the instant procurement . However, if a significant price variation is evident from offeror responses, and the potential for significant savings is apparent, the contracting officer shall consult with the cognizant inventory manager or requirements development activity before proceeding with an award or negotiations. If this consultation discloses that the Government should be ordering an item of supply in different quantities and the inventory manager/requirements development activity concurs, the solicitation for the item should be amended or canceled and a new requisition should be obtained.

Definitions of "inherently governmental activity" and other terms applicable to this subpart are set forth at Attachment D of the Office of Management and Budget Circular No. A-76 (Revised), Performance of Commercial Activities, dated May 29, 2003 (the Circular).

(a) The Circular provides that it is the policy of the Government to-

(1) Perform inherently governmental activities with Government personnel; and

(2) Subject commercial activities to the forces of competition.

(b) As provided in the Circular, agencies shall -

(1) Not use contractors to perform inherently governmental activities;

(2) Conduct public-private competitions in accordance with the provisions of the Circular and, as applicable, these regulations;

(3) Give appropriate consideration relative to cost when making performance decisions between agency and contractor performance in public-private competitions;

(4) Consider the Agency Tender Official an interested party in accordance with 31 U.S.C. 3551 to 3553 for purposes of filing a protest at the Government Accountability Office; and

(5) Hear contests in accordance with OMB Circular A-76, Attachment B, Paragraph F.

(c) When using sealed bidding in public-private competitions under OMB Circular A-76, contracting officers shall not hold discussions to correct deficiencies.

(a) The contracting officer shall , when soliciting offers and tenders, insert in solicitations issued for standard competitions the provision at 52.207-1 , Notice of Standard Competition.

(b) The contracting officer shall , when soliciting offers , insert in solicitations issued for streamlined competitions the provision at 52.207-2 , Notice of Streamlined Competition.

(c) The contracting officer shall insert the clause at 52.207-3 , Right of First Refusal of Employment, in all solicitations which may result in a conversion from in-house performance to contract performance of work currently being performed by the Government and in contracts that result from the solicitations , whether or not a public-private competition is conducted. The 10- day period in the clause may be varied by the contracting officer up to a period of 90 days.

This subpart—

(a) Implements section 555 of the FAA (Federal Aviation Administration) Reauthorization Act of 2018 ( Pub. L. 115-254 );

(b) Provides guidance when acquiring equipment and more than one method of acquisition is available for use; and

(c) Applies to both the initial acquisition of equipment and the renewal or extension of existing equipment leases or rental agreements.

(1) Agencies shall acquire equipment using the method of acquisition most advantageous to the Government based on a case-by-case analysis of comparative costs and other factors in accordance with this subpart and agency procedures.

(2) The methods of acquisition to be compared in the analysis shall include, at a minimum—

(i) Purchase;

(ii) Short-term rental or lease;

(iii) Long-term rental or lease;

(iv) Interagency acquisition (see 2.101 ); and

(v) Agency acquisition agreements, if applicable, with a State or local government.

(1) The factors to be compared in the analysis shall include, at a minimum:

(i) Estimated length of the period the equipment is to be used and the extent of use within that period;

(ii) Financial and operating advantages of alternative types and makes of equipment;

(iii) Cumulative rent, lease, or other periodic payments, however described, for the estimated period of use;

(iv) Net purchase price;

(v) Transportation, installation, and storage costs;

(vi) Maintenance, repair, and other service costs; and

(vii) Potential obsolescence of the equipment because of imminent technological improvements.

(2) The following additional factors should be considered, as appropriate, depending on the type, cost, complexity, and estimated period of use of the equipment:

(i) Availability of purchase options .

(ii) Cancellation, extension, and early return conditions and fees.

(iii) Ability to swap out or exchange equipment.

(iv) Available warranties .

(v) Insurance , environmental, or licensing requirements.

(vi) Potential for use of the equipment by other agencies after its use by the acquiring agency is ended.

(vii) Trade-in or salvage value.

(viii) Imputed interest.

(ix) Availability of a servicing capability, especially for highly complex equipment; e.g. , can the equipment be serviced by the Government or other sources if it is purchased?

(c) The analysis in paragraph (a) is not required—

(1) When the President has issued an emergency declaration or a major disaster declaration pursuant to the Robert T. Stafford Disaster Relief and Emergency Assistance Act ( 42 U.S.C. 5121 et seq. );

(2) In other emergency situations if the agency head makes a determination that obtaining such equipment is necessary in order to protect human life or property; or

(3) When otherwise authorized by law.

(a) Purchase method.

(1) Generally, the purchase method is appropriate if the equipment will be used beyond the point in time when cumulative rental or leasing costs exceed the purchase costs.

(2) Agencies should not rule out the purchase method of equipment acquisition in favor of renting or leasing merely because of the possibility that future technological advances might make the selected equipment less desirable.

(b) Rent or lease method.

(1) The rent or lease method is appropriate if it is to the Government's advantage under the circumstances. The rent or lease method may also serve as a short-term measure when the circumstances—

(i) Require immediate use of equipment to meet program or system goals; but

(ii) Do not currently support acquisition by purchase.

(2) If a rent or lease method is justified, a rental or lease agreement with option to purchase is preferable.

(3) Generally, a long term rental or lease agreement should be avoided, but may be appropriate if an option to purchase or other favorable terms are included.

(4) If a rental or lease agreement with option to purchase is used, the contract shall state the purchase price or provide a formula which shows how the purchase price will be established at the time of purchase.

(a) When requested by an agency, the General Services Administration (GSA) will assist in rent, lease, or purchase decisions by providing information such as-

(1) Pending price adjustments to Federal Supply Schedule contracts;

(2) Recent or imminent technological developments;

(3) New techniques; and

(4) Industry or market trends.

(b) For additional GSA assistance and guidance, agencies may —

(1) Request information from the GSA FAS National Customer Service Center by phone at 1-800-488-3111 or by email at [email protected] ; and

(2) See GSA website, Schedule 51 V Hardware Superstore-Equipment Rental, ( https://www.gsa.gov/buying-selling/products-services/industrial-products-services/rental-of-industrial-equipment ).

(c) For additional OMB guidance, see—

(1) Section 13, Special Guidance for Lease-Purchase Analysis, and paragraph 8.c.(2), Lease-Purchase Analysis, of OMB Circular A-94, Guidelines and Discount Rates for Benefit-Cost Analysis of Federal Programs, ( https://www.whitehouse.gov/wp-content/uploads/legacy_drupal_files/omb/circulars/A94/a094.pdf ); and

(2) Appendix B, Budgetary Treatment of Lease-Purchases and Leases of Capital Assets, of OMB Circular A-11, Preparation, Submission, and Execution of the Budget, ( https://www.whitehouse.gov/wp-content/uploads/2018/06/app_b.pdf ).

The contracting officer shall insert a clause substantially the same as the clause in 52.207-5 , Option to Purchase Equipment, in solicitations and contracts involving a rental or lease agreement with option to purchase.

The purpose of this subpart is to prescribe policies and procedures to ensure that inherently governmental functions are not performed by contractors.

The requirements of this subpart apply to all contracts for services. This subpart does not apply to services obtained through either personnel appointments, advisory committees, or personal services contracts issued under statutory authority.

(a) Contracts shall not be used for the performance of inherently governmental functions.

(b) Agency decisions which determine whether a function is or is not an inherently governmental function may be reviewed and modified by appropriate Office of Management and Budget officials.

(c) The following is a list of examples of functions considered to be inherently governmental functions or which shall be treated as such. This list is not all inclusive:

(1) The direct conduct of criminal investigations.

(2) The control of prosecutions and performance of adjudicatory functions other than those relating to arbitration or other methods of alternative dispute resolution.

(3) The command of military forces, especially the leadership of military personnel who are members of the combat, combat support, or combat service support role.

(4) The conduct of foreign relations and the determination of foreign policy.

(5) The determination of agency policy, such as determining the content and application of regulations, among other things.

(6) The determination of Federal program priorities for budget requests.

(7) The direction and control of Federal employees.

(8) The direction and control of intelligence and counter-intelligence operations.

(9) The selection or non-selection of individuals for Federal Government employment, including the interviewing of individuals for employment.

(10) The approval of position descriptions and performance standards for Federal employees.

(11) The determination of what Government property is to be disposed of and on what terms (although an agency may give contractors authority to dispose of property at prices within specified ranges and subject to other reasonable conditions deemed appropriate by the agency).

(12) In Federal procurement activities with respect to prime contracts-

(i) Determining what supplies or services are to be acquired by the Government (although an agency may give contractors authority to acquire supplies at prices within specified ranges and subject to other reasonable conditions deemed appropriate by the agency);

(ii) Participating as a voting member on any source selection boards;

(iii) Approving any contractual documents, to include documents defining requirements, incentive plans, and evaluation criteria;

(iv) Awarding contracts;

(v) Administering contracts (including ordering changes in contract performance or contract quantities, taking action based on evaluations of contractor performance, and accepting or rejecting contractor products or services);

(vi) Terminating contracts;

(vii) Determining whether contract costs are reasonable, allocable, and allowable; and

(viii) Participating as a voting member on performance evaluation boards.

(13) The approval of agency responses to Freedom of Information Act requests (other than routine responses that, because of statute, regulation, or agency policy, do not require the exercise of judgment in determining whether documents are to be released or withheld), and the approval of agency responses to the administrative appeals of denials of Freedom of Information Act requests.

(14) The conduct of administrative hearings to determine the eligibility of any person for a security clearance, or involving actions that affect matters of personal reputation or eligibility to participate in Government programs.

(15) The approval of Federal licensing actions and inspections .

(16) The determination of budget policy, guidance, and strategy.

(17) The collection, control, and disbursement of fees, royalties, duties, fines, taxes, and other public funds, unless authorized by statute, such as 31 U.S.C. 3718 (relating to private attorney collection services), but not including-

(i) Collection of fees, fines, penalties, costs, or other charges from visitors to or patrons of mess halls, post or base exchange concessions, national parks, and similar entities or activities, or from other persons, where the amount to be collected is easily calculated or predetermined and the funds collected can be easily controlled using standard case management techniques; and

(ii) Routine voucher and invoice examination.

(18) The control of the treasury accounts.

(19) The administration of public trusts.

(20) The drafting of Congressional testimony, responses to Congressional correspondence, or agency responses to audit reports from the Inspector General, the Government Accountability Office, or other Federal audit entity.

(d) The following is a list of examples of functions generally not considered to be inherently governmental functions. However, certain services and actions that are not considered to be inherently governmental functions may approach being in that category because of the nature of the function, the manner in which the contractor performs the contract, or the manner in which the Government administers contractor performance. This list is not all inclusive:

(1) Services that involve or relate to budget preparation, including workload modeling, fact finding, efficiency studies, and should -cost analyses, etc.

(2) Services that involve or relate to reorganization and planning activities.

(3) Services that involve or relate to analyses, feasibility studies, and strategy options to be used by agency personnel in developing policy.

(4) Services that involve or relate to the development of regulations.

(5) Services that involve or relate to the evaluation of another contractor’s performance.

(6) Services in support of acquisition planning .

(7) Contractors providing assistance in contract management (such as where the contractor might influence official evaluations of other contractors).

(8) Contractors providing technical evaluation of contract proposals.

(9) Contractors providing assistance in the development of statements of work.

(10) Contractors providing support in preparing responses to Freedom of Information Act requests.

(11) Contractors working in any situation that permits or might permit them to gain access to confidential business information and/or any other sensitive information (other than situations covered by the National Industrial Security Program described in 4.402 (b)).

(12) Contractors providing information regarding agency policies or regulations, such as attending conferences on behalf of an agency, conducting community relations campaigns, or conducting agency training courses.

(13) Contractors participating in any situation where it might be assumed that they are agency employees or representatives.

(14) Contractors participating as technical advisors to a source selection board or participating as voting or nonvoting members of a source evaluation board.

(15) Contractors serving as arbitrators or providing alternative methods of dispute resolution.

(16) Contractors constructing buildings or structures intended to be secure from electronic eavesdropping or other penetration by foreign governments.

(17) Contractors providing inspection services.

(18) Contractors providing legal advice and interpretations of regulations and statutes to Government officials.

(19) Contractors providing special non-law enforcement, security activities that do not directly involve criminal investigations, such as prisoner detention or transport and non-military national security details.

(e) Agency implementation shall include procedures requiring the agency head or designated requirements official to provide the contracting officer , concurrent with transmittal of the statement of work (or any modification thereof), a written determination that none of the functions to be performed are inherently governmental. This assessment should place emphasis on the degree to which conditions and facts restrict the discretionary authority, decision-making responsibility, or accountability of Government officials using contractor services or work products . Disagreements regarding the determination will be resolved in accordance with agency procedures before issuance of a solicitation .

Definitions

FAC Changes

Style Formatter

• Data Initiatives
• Regulations
• Smart Matrix
• Regulations Search
• Acquisition Regulation Comparator (ARC)
• Large Agencies
• Small Agencies
• CAOC History
• CAOC Charter
• Civilian Agency Acquisition Council (CAAC)
• Federal Acquisition Regulatory Council
• Interagency Suspension and Debarment Committee (ISDC)

ACQUISITION.GOV

An official website of the General Services Administration

Business Acquisition Proposal Template

Download our business acquisition proposal template which allows you to make an initial offer to acquire a company from its owner. Book a playbook demo to explore — schedule a call with us and we will reach out to help you get started.

What are the benefits of using this template?

Excel Export/Import

Export this template to Excel with just one click. Also, Import your Excel spreadsheet easily - turn it into a nice dealroom.net board.

Integrated with Data Room

The tasks tracker is integrated with the virtual data room, so you can start collecting documents right away.

Easy Tracking

Track your projects progress from start to finish, know if a task is stuck or behind schedule.

Eliminate Excel trackers, emails and disconnected tools with DealRoom

[Acquirer name]

[Acquirer CEO/Shareholder]

[Street address,

City, country,

Postal code

[Target name]

[Target CEO/Shareholder]

Postal code] ‍

Strictly Private & Confidential/Subject to contract

[City], [20th] [June] 202[0]

Acquisition of the business and assets of [Target name]

Dear [Target CEO/Shareholder],

This letter of intent from [Acquirer name] is sent in respect of a potential acquisition of [Target name]. We appreciate the time and energy you and your team have afforded us in discussing this opportunity and the information that has been provided thus far.

Our evaluation shows that [Target name] acquisition would bolster our [segment name] segment and bring synergy with our other business segments. Acquiring [Target name] would also bring unique value and capabilities to services we provide to the market. Below are the terms for potential acquisition of [Target name].

Transaction Overview and Structure

Based on our preliminary review of the information provided and subject to the conditions set forth below, [Acquirer name] is pleased to submit this non-binding letter of intent. We propose purchasing [100]% of the equity of the [Target name] for $[15] million (price may change upon the results of Due Diligence).

We offer a total purchase price of $[15] million consisting of:

▪ $[7] million of cash;

▪ $[2] million - shares of [Acquirer name], issued immediately upon closing and not

subject to any vesting period representing approximately [10]% of [Acquirer name];

▪ $[3] million of debt taken on the [Target name] balance;

▪ $[5] million of performance upside - performance payout upon achieving the following targets/milestones:

o Milestone 1: Revenue of $[X] million in year 20[XX]

o Milestone 2: [Insert milestone] in year 20[XX]

Deal Timeline

We propose the following deal timeline:

▪ [Insert date]: Financial, operational and technical due diligence

▪ [Insert date]: Site/office visit to [Target name], term sheet signing

▪ [Insert date]: Drafting of legal documentation

▪ [Insert date]: Signing, money and ownership transferInsert Acquirer company logo if applicable

Due Diligence

Due to the nature of this transaction we require a thorough and complete due diligence (fully paid by us if needed) even after conducting a preliminary data review. We envision that remaining due diligence would include, but would not be limited to, commercial, accounting, financial, technical, [insert DD segment] due diligence, as well as customary legal, tax and regulatory work. We believe that we can complete our due diligence within [8] weeks from the date our proposal is accepted.

Exclusivity & Confidentiality

If shareholders of [Target name] are interested in pursuing the proposed Transaction, we would require [70] days of exclusivity to finalize our due diligence, draft and negotiate legal documentation, subject to a [30]-day extension upon the agreement of both parties. We are ready to sign an additional confidentiality agreement to access to [Target name] information and the ability to share that information with our prospective equity partners and debt financing sources in a manner that protects the confidentiality of your information and our discussions.

Non-Binding Commitment

This non-binding indication of interest is confidential and may not be disclosed other than to you, the Company and/or its shareholders and its advisors on a strictly need-to-know basis. We look forward to working with you to close this deal keeping in mind the interest of all parties to this transaction.

Kind regards,

Acquirer CEO/Shareholder

Mobile: +X (XXX) XXX XX XX

Tel: +X (XXX) XXX XX XX

e-mail: [email protected]

What Tasks does the 

What is due diligence.

Due diligence is a critical aspect of any deal that begins very early in the process and can continue right up until closing. During due diligence, the potential buyer asks questions and requests documentation from the seller that helps the buyer understand the target company and its business. These requests are usually general to start and become more specific as the buyer develops a greater understanding of the target. Buyers use the information provided by the seller to evaluate the opportunities and risks associated with the potential transaction. It is important for sellers to stay organized throughout the process. Buyers often submit thorough, detailed request lists that require input from numerous members of the seller’s deal team.

What is a due diligence checklist?

As the name implies, a due diligence request list is a list of questions and requests for information and documentation that a buyer submits to a seller in order to learn about the target company, its business and its operations. The initial diligence request list tends to be broad and typically includes an extensive list of questions covering a wide range of subjects. This allows the buyer to gain a broad understanding of the target company and identify key issues that can be investigated and considered more closely. Because every deal is different, due diligence request lists have to be tailored to meet the needs of the buyer and address the unique circumstances of your transaction. However, there is a variety of fundamental requests that are relevant in most deals. These are the types of requests that our templates are designed to address.

What Questions Does the Master Due Diligence Questionnaire Include?

Key considerations when using our m&a due diligence template.

Our templates are drafted to provide an inclusive and wide-ranging list of initial due diligence requests. However, the templates, as well as the information contained therein, are not legal advice. They are not complete, and they are not specific to your transaction. The templates are designed to elicit general information from the seller that will provide the buyer with a broad overview of the target and it’s business and operations. You should review any template before using it, and it may need to be modified to ensure that it is suitable and relevant to your circumstances. Information provided by the seller will likely trigger additional questions that focus on specific aspects of the target’s business and issues identified during the due diligence process.

Are the requests in the template comprehensive?

No. Our Due Diligence Checklist is drafted to include typical requests that are relevant in most transactions. However, every deal and every target company is unique. Before utilizing any template, it is important that you review it with the help of your legal and other professional advisors to ensure that the requests are complete and tailored to the specific circumstances of your deal.

How to use the template with Dealroom

• Start 14-day Free Trial of DealRoom and sign-up
• Select a Master Due Diligence Template while creating a new room
• Start assigning, adding to, and completing due diligence requests with needed documents by uploading them into the built-in virtual data room. The Requests tab is automatically populated with the requests from the due diligence template.

Can I change requests in this checklist or add new?

Every M&A process is different. Downloaders are urged to make these checklists their own by changing the providing information to better fit their needs.

Does this questionnaire provide all the necessary integration information?

This checklist was created by and for M&A professionals. It includes a comprehensive starting point for the integration process. However, every deal is different and may require additional requirements and tasks.

How to use this template with DealRoom?

• Select an Integration Template while creating a new workspace
• Start planning, assigning, adding to, and completing integration tasks. The Requests tab is automatically populated with the tasks from the integration template.

Download your free template by simply filling out the form below

Utilizing a checklist is just step one. In order to have a seamless process, M&A checklists need to be utilized with the proper deal workflow tool.

‍ Request a demo to learn how you can turn a checklist into an automated process and workflow with the DealRoom platform. With DealRoom, you can tackle any type of due diligence.

How DealRoom can help you execute due diligence

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Talent Acquisition Business Plan HR

Talent acquisition business plan, table of contents.

Talent Acquisition Business Plan ........................................................... 1

1. Executive Summary .................................................................. 2

Key Strategies: ........................................................................ 3

2. Company Overview ................................................................... 3

Mission Statement: .................................................................. 3

Core Values: ............................................................................ 3

Company Culture: ................................................................... 4

Current Staffing Situation: ...................................................... 4

3. SWOT Analysis ......................................................................... 4

4. Goals and Objectives ................................................................. 5

Hiring Goals: ........................................................................... 5

Talent Retention Goals: .......................................................... 5

Diversity and Inclusion Goals: ................................................ 6

Other Relevant Metrics: .......................................................... 6

5. Target Candidate Profiles ......................................................... 6

6. Recruitment Strategies .............................................................. 7

7. Selection and Interview Process ............................................... 8

8. Employer Branding ................................................................... 9

9. Diversity and Inclusion Initiatives .......................................... 10

10. Budget ................................................................................... 10

11. Timeline ................................................................................ 11

12. Key Performance Indicators (KPIs) ...................................... 12

13. Training and Development ................................................... 12

14. Legal and Compliance Considerations ................................. 13

15. Risk Management .................................................................. 13

16. Stakeholder Communication ................................................. 14

Internal Communication: ...................................................... 14

External Communication: ..................................................... 14

17. Monitoring and Adjustment .................................................. 14

1. Executive Summary

The Talent Acquisition Business Plan outlines our strategic approach to attracting, hiring, and retaining top talent to support the growth and success of [Your Company Name] in [Your Company Address]. Our goal is to become the employer of choice in the region, known for our commitment to diversity, innovation, and excellence in talent acquisition. This plan presents a roadmap to achieve these objectives.

Key Strategies:

●       Strengthen our online presence and employer branding efforts to reach a wider candidate audience.

●       Leverage data-driven insights to refine our sourcing and selection processes.

●       Collaborate with department heads to identify skill gaps and align recruitment efforts with business needs.

●       Invest in training and development programs to promote continuous learning and growth for our team.

●       Regularly review and adapt our plan to stay aligned with evolving market trends and talent acquisition best practices.

2. Company Overview

Mission statement:.

[Your Company Name] is committed to helping organizations build high-performing teams by providing innovative talent solutions. We strive to foster a culture of inclusivity, excellence, and continuous improvement in our operations.

Core Values:

●       Innovation: We embrace creativity and adaptability to stay at the forefront of the ever-evolving HR landscape.

●       Integrity: We uphold the highest ethical standards in our interactions with candidates, clients, and colleagues.

●       Diversity and Inclusion: We value and celebrate diversity, recognizing that unique perspectives drive innovation.

●       Excellence: We are dedicated to delivering top-notch service, setting the bar for quality in talent acquisition.

Company Culture:

Our culture at [Your Company Name] is one of collaboration, continuous learning, and mutual respect. We encourage open communication, ideas sharing, and support each other's professional growth. Our commitment to diversity and inclusion is woven into the fabric of our organization, fostering an environment where every team member feels valued and empowered.

Current Staffing Situation:

As of the submission date of this plan, [Your Company Name] employs a dedicated team of 25 professionals. Our team consists of recruiters, HR specialists, and support staff, all working diligently to support our clients' talent acquisition needs. We have successfully placed over 200 candidates in various roles across industries in [Your Company Address], during the last year. While our achievements are commendable, we recognize the potential for further growth and improvement in our processes.

3. SWOT Analysis

The Talent Acquisition Business Plan for [Your Company Name] is designed to leverage our strengths, address our weaknesses, seize opportunities, and mitigate threats, ultimately positioning us as a leader in talent acquisition in [Your Company Address], and beyond.

4. Goals and Objectives

Our Talent Acquisition Business Plan sets forth the following clear and specific goals to guide our recruitment efforts and talent management:

Hiring Goals:

●       Reduce Time-to-Fill: Decrease the average time it takes to fill open positions by 20% within the next fiscal year.

●       Increase Diversity: Boost the representation of underrepresented groups in our candidate pool and hired workforce by 15% over the next two years.

●       Enhance Quality of Hires: Implement rigorous assessment processes to improve the quality of our candidate placements, resulting in a 10% increase in job performance ratings by 2059.

Talent Retention Goals:

●       Improve Employee Retention: Increase our annual employee retention rate by 5% through the implementation of targeted engagement and development initiatives.

●       Succession Planning: Develop and implement a comprehensive succession plan to identify and prepare high-potential employees for leadership roles, ensuring a smooth transition in key positions.

Diversity and Inclusion Goals:

●       Diverse Hiring Panels: Ensure diverse representation on interview panels and decision-making committees, with the goal of achieving a minimum of 50% diversity.

●       Training and Awareness: Launch company-wide diversity and inclusion training programs to promote cultural competence and foster an inclusive work environment.

Other Relevant Metrics:

●       Cost per Hire: Reduce the cost per hire by 10% through more efficient recruitment processes and resource allocation.

●       Candidate Experience: Improve the candidate experience, as measured by feedback surveys, with a target of achieving a satisfaction rating of 90% or higher.

5. Target Candidate Profiles

In order to meet our hiring goals and objectives, we have identified the following target candidate profiles for [Your Company Name]:

These target candidate profiles serve as a foundation for our recruitment efforts, ensuring that we are seeking candidates who align with our specific needs and requirements.

6. Recruitment Strategies

Our Talent Acquisition Business Plan outlines a comprehensive approach to sourcing and attracting top talent. Our recruitment strategies include:

●       Online Job Postings: Utilize our website and popular job boards to reach a wide candidate audience.

●       Social Media Engagement: Leverage platforms like LinkedIn, Twitter, and Facebook for employer branding, job postings, and candidate engagement.

●       Employee Referral Program: Encourage and reward employees for referring qualified candidates.

●       University and College Partnerships: Forge partnerships with local educational institutions to access a fresh talent pool and establish internship programs.

●       Recruitment Agencies: Collaborate with specialized recruitment agencies for hard-to-fill positions and to access passive candidates.

●       Networking and Industry Events: Attend HR and industry-specific events to connect with potential candidates and stay updated on trends.

●       Data-Driven Decision-Making: Utilize analytics and metrics to continuously refine our sourcing strategies based on the effectiveness of different channels.

7. Selection and Interview Process

Our selection and interview process is designed to be thorough, fair, and focused on identifying the best candidates who align with our company's values and objectives.

8. Employer Branding

Enhancing our employer brand is critical to attracting top talent. Our strategies for employer branding include:

●       Online Presence: Maintain an engaging and informative website and social media profiles that highlight our company culture, employee testimonials, and career opportunities.

●       Employee Value Proposition (EVP): Develop a compelling EVP that communicates the unique benefits of working at [Your Company Name], including career development, a diverse and inclusive workplace, and work-life balance.

●       Content Marketing: Share thought leadership articles, industry insights, and educational content to position ourselves as experts in the HR field.

●       Community Engagement: Participate in local events, sponsorships, and charitable initiatives to demonstrate our commitment to the community.

●       Employee Advocacy: Encourage and empower our employees to become brand ambassadors, sharing their positive experiences within the organization on social media and professional networks.

By consistently reinforcing our employer brand, we aim to create a strong and attractive image that resonates with potential candidates.

9. Diversity and Inclusion Initiatives

Promoting diversity and inclusion is central to our talent acquisition strategy. Our initiatives include:

●       Diverse Candidate Sourcing: Actively seek out diverse candidate pools through partnerships with diversity-focused job boards, organizations, and networks.

●       Inclusive Interview Training: Train interviewers on inclusive and bias-free interviewing techniques to ensure a fair assessment of all candidates.

●       Diversity Metrics: Establish and track metrics to measure diversity at every stage of the hiring process.

●       Employee Resource Groups: Foster employee-led resource groups to provide a supportive community for underrepresented employees and advocate for inclusivity.

●       Diversity Training: Implement mandatory diversity and inclusion training for all employees, emphasizing the importance of a diverse workforce.

Our commitment to diversity and inclusion is not just a goal; it's a core value that we actively integrate into all aspects of our hiring process.

Estimating the financial resources required for our recruitment efforts is essential for effective planning. Our budget includes:

●       Advertising Costs: Allocation for job postings on various platforms, including job boards and social media.

●       Software Tools: Investment in applicant tracking systems (ATS), candidate assessment tools, and HR analytics software.

●       Personnel Costs: Salaries, benefits, and training expenses for our HR team, including recruiters, specialists, and support staff.

●       Diversity and Inclusion Programs: Budget for training, events, and initiatives aimed at promoting diversity and inclusion in our workforce.

●       Travel and Events: Funds for attending industry events, conferences, and university career fairs.

Our budget will be regularly reviewed and adjusted to ensure optimal resource allocation and cost-effectiveness in our recruitment efforts.

11. Timeline

A well-defined timeline is crucial for effective talent acquisition planning. The following outlines when various recruitment activities and goals are expected to be achieved:

This timeline provides a clear outline of our activities and objectives, ensuring that we remain on track to meet our talent acquisition goals.

12.  Key Performance Indicators (KPIs)

To measure the success of our talent acquisition efforts, we will track and analyze key performance indicators (KPIs) throughout the recruitment process. Some of our primary KPIs include:

●       Time-to-Fill: The average number of days it takes to fill a vacant position.

●       Cost-per-Hire: The total cost incurred to hire one employee, including advertising, software tools, and personnel costs.

●       Retention Rate: The percentage of employees who remain with the company after a specified period, typically one year.

●       Diversity Metrics: Monitoring the representation of diverse groups in our candidate pool, interviewees, and hires.

●       Candidate Satisfaction: Measuring candidate satisfaction through post-interview and post-hire surveys.

These KPIs will provide valuable insights into the efficiency, effectiveness, and inclusivity of our talent acquisition process, helping us make data-driven improvements.

13. Training and Development

Ensuring that our new hires have a smooth transition into the organization and ongoing opportunities for growth is essential. Our training and development plans include:

●       Comprehensive Onboarding: Develop a structured onboarding program for new employees to facilitate their integration into our company culture and provide them with essential job-related training.

●       Continuing Education: Encourage and support ongoing learning and development through workshops, courses, and certifications relevant to each employee's role.

●       Mentorship Programs: Establish mentorship programs to pair experienced employees with newer hires, promoting knowledge sharing and career development.

Our commitment to training and development will contribute to employee retention, skill enhancement, and career advancement within the organization.

14.  Legal and Compliance Considerations

We are dedicated to ensuring that our recruitment process complies with all relevant labor laws and regulations. Our legal and compliance considerations include:

●       Equal Opportunity Employment: Adhering to federal, state, and local laws that prohibit discrimination on the basis of race, gender, age, religion, disability, and other protected characteristics.

●       Background Checks: Conducting background checks in compliance with applicable laws and obtaining proper consent from candidates.

●       Data Protection: Safeguarding candidate data and ensuring compliance with data protection regulations, such as GDPR (if applicable).

●       Record Keeping: Maintaining accurate records of all recruitment activities, including applications, interviews, and offers, in compliance with record-keeping requirements.

By prioritizing legal and compliance considerations, we mitigate risks and uphold our commitment to ethical and lawful recruitment practices.

15.  Risk Management

Identifying and mitigating potential risks is crucial for the success of our talent acquisition efforts. Some of the risks we anticipate and strategies to mitigate them include:

By proactively identifying and addressing potential risks, we aim to minimize their impact on our talent acquisition strategy.

16. Stakeholder Communication

Effective communication with stakeholders is vital to the successful execution of our Talent Acquisition Business Plan. We will implement the following communication strategies:

Internal Communication:

●       Regular Updates: Provide ongoing updates to our HR team, hiring managers, and department heads on the progress of our talent acquisition initiatives.

●       Feedback Mechanisms: Establish feedback channels to gather input and insights from internal stakeholders, ensuring their perspectives are considered in plan adjustments.

●       Training and Awareness: Conduct training sessions and workshops to keep our HR team and hiring managers informed about the latest recruitment trends and strategies.

External Communication:

●       Employer Brand Promotion: Continuously enhance our employer brand through external communication channels such as social media, industry events, and partnerships.

●       Candidate Feedback: Solicit feedback from candidates throughout the recruitment process to improve our candidate experience and reputation.

●       Community Engagement: Engage with the local community through outreach programs, sponsorships, and networking to foster positive external relationships.

17.  Monitoring and Adjustment

Regularly reviewing progress and making adjustments to our talent acquisition strategy is essential for continuous improvement. Our monitoring and adjustment plan includes:

●       Quarterly Performance Reviews: Conduct quarterly reviews of our KPIs and recruitment metrics to assess the effectiveness of our strategies.

●       Annual Plan Review: Conduct an annual comprehensive review of the Talent Acquisition Business Plan to evaluate our goals, objectives, and overall performance.

●       Feedback Integration: Integrate feedback from candidates, employees, and stakeholders into our recruitment processes and plan adjustments.

●       Agile Adaptation: Maintain flexibility to adapt quickly to changing market conditions, emerging talent trends, and unforeseen challenges.

Through regular monitoring and adjustment, we will ensure that our talent acquisition strategy remains agile and aligned with the evolving needs of [Your Company Name] in [Your Company Address].  

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